Binance Report: Crypto Exchange Adds 40M Users in 2023 Despite Regulatory Hurdles

UTC by Steve Muchoki · 3 min read
Binance Report: Crypto Exchange Adds 40M Users in 2023 Despite Regulatory Hurdles
Photo: Binance / Facebook

Binance reported more than $1.2 billion in assets under custody for more than 170 million users in its 2023 performance report.

Leading cryptocurrency exchange by daily traded volume and registered users, Binance Holdings Ltd., has continued to build the necessary infrastructure and products to enable the next phase of web3 mass adoption. Despite the former Chief Executive Officer Changpeng Zhao (CZ) being forcefully ousted by the United States government, Binance has demonstrated that it was built to stay and facilitate the mainstream adoption of Bitcoin and digital assets.

Moreover, the Binance crypto exchange holds more than half a million Bitcoins and is regulated in several global jurisdictions. Additionally, the newly appointed Binance CEO Richard Teng has promised to continue with CZ’s legacy of protecting the crypto users and simultaneously focus on regulatory compliance.

Binance 2023 Performance Report

As the end of 2023 approaches, Binance has provided a detailed glimpse of its annual performance in a bid to foster transparency within the industry amid heightened regulatory scrutiny. According to the report, Binance added 40 million new users year-to-date, thus representing an increase of 30 percent from last year’s end. As a result, the Binance crypto exchange is home to more than 170 million registered users, who have been verified through the Know Your Customer (KYC) feature.

From the 431 digital assets available for trading on Binance, the exchange currently has 1,785 liquid trading pairs. Binance reported it now has 112 fiat currencies supported on the platform to enable seamless off and on-ramping services with its partners. In 2023, Binance P2P trades that were completed jumped by 18 percent compared to 2022, following a 39 percent spike in P2P users.

As the crypto regulatory landscape changes, Binance announced that it spent around $213 million in 2023 on compliance compared to $158 million in 2022, thus a 35 percent rise YoY. The cryptocurrency exchange now holds operational licenses in different jurisdictions and continues to engage with regulators to obtain necessary operating licenses.

In a bid to enable the seamless adoption of digital assets and decentralized financial (DeFi) protocols, the cryptocurrency exchange launched the Binance Web3 wallet in 2023 which allows users to manage their assets. Interestingly, the Binance Web3 wallet registered millions of users within the first week of launch.

Meanwhile, Binance highlighted that it has significantly widened its capacity to educate users on the cryptocurrency market and the web3 industry. Additionally, the cryptocurrency exchange indicated that it has employed 70 members to focus on security, whereby they processed 58k requests from different law enforcement in 2023.

Market Implications

Binance has demonstrated the highest level of professionalism despite the $4.3 billion settlement with the United States Department of Treasury. As a result, BNB’s price gained more than 37 percent in December to trade around $316 on Friday. Additionally, CZ’s fortune has been reported to increase by a whopping $25 billion YTD.

Binance News, Cryptocurrency News, News
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