Binance Records $3.27B Inflow MTD Despite Regulatory Troubles
Leading crypto exchange Binance has released its 21st proof of reserves (PoR), revealing an inflow of $3.27 billion as of August 1st, when the exchange took the snapshot. The billions of dollars worth of inflow comes amid the regulatory tussles Binance faces from several countries.
Binance Sees Over $3.2B Inflow
Proof of reserves is an auditing process in which crypto exchanges publicly show that they have enough assets in their reserves to cover the entirety of investors’ investments. These reports are often released monthly. Most prominent crypto exchanges share these PoR reports to bolster transparency by assuring customers that their assets are fully backed.
Binance popularized the process following the dramatic crash of the once-giant crypto derivatives exchange FTX. Its official website shows that investors’ funds are fully backed, and there are more assets to boost user confidence. Binance added that these assets are independent from its corporate holdings. The exchange also calms users by telling them it has “zero debt” and has “an emergency fund” for severe market downturns.
A closer look at Binance’s PoR report shows that investors bought more BTC than the previous month, bringing the total BTC held at Binance to 613,470.71 BTC. On the other hand, the exchange’s ETH reserves dropped by 0.21% to 4.701 million ETH. The USDT portfolio also decreased by 1.52% between July 1st and August 1st. It is currently above 21.19 billion USDT.
Binance’s monthly PoR is much needed since it holds the largest market share among centralized crypto exchanges. According to the price-tracking platform CoinStats, the exchange boasts a trading volume of approximately $22 billion, significantly surpassing other rival platforms. Yesterday, Binance CEO Richard Teng revealed that the exchange recorded $1.2 billion in daily net inflow, signaling investors’ confidence in the platform despite the market conditions.
Regulatory Troubles Linger
Despite its applaudable market performances, Binance is continuously plagued by regulatory clampdowns from several governments. CoinTab recently reported that the crypto exchange is facing an $86 million tax show cause notice in India and tax evasion charges in Nigeria, one of Africa’s biggest countries.
Binance has also had its share of legal tussle against the U.S. government over claims of offering unregistered securities to investors.
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