Can you save with Binance?

Scottex99

It's "safe" but there's no insurance and certainly not FCA backed.

There's counterparty risk for sure. Reason I think it is safe is they make about 50m a day in fees. They could get hacked, exit scam or disappear tomorrow but why would if they are that profitable?

Gary1984

Charles Ponzi's Postage Stamp wheeze was bringing in a lot of money  on a day to day basis as well at one point. 

Scottex99

Deleted_User said:

Scottex99 said:

It's "safe" but there's no insurance and certainly not FCA backed.

There's counterparty risk for sure. Reason I think it is safe is they make about 50m a day in fees. They could get hacked, exit scam or disappear tomorrow but why would if they are that profitable?

Sure, if by "safe" you mean unsafe

Many businesses that fail were once profitable. That means very little by itself. If you have a good understanding or their business model and finances, you might decide it's worth the risk, for a limited part of your money. I used to do that with some higher-yielding corporate bonds. But don't call it safe. And people with no understanding of the business and its finances should steer well clear.

Fair enough, yeah.

I have used Binance at least 4 years. Have been staking there for at least a year, probably made $2k "for free" but I'm happy with the risk. 

I might not be able to log in tomorrow and it might all be gone. I doubt it though

Scottex99

Biggest exchange in the whole industry, so yeah I know what they do and know the risks

Speedster2

Scottex99 said:

Biggest exchange in the whole industry, so yeah I know what they do and know the risks

https://www.ft.com/content/8bc0e5e0-2705-496d-a265-acccaffaee87

Binance and it's subsidiaries banned from any operations in the UK. I didn't use it, did some small trades on Revolut despite the higher fees.

The Financial Conduct Authority also this weekend issued a consumer warning against both the Cayman Islands-registered Binance holdings company and Binance Markets Limited

Speedster2

Harsh stuff: (from FT)

As part of the FCA’s actions, the regulator ordered Binance to display by next Wednesday on its website that, “BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE UK.” Binance Markets Limited also must “secure and preserve all records and/or information . . . relating to all UK consumers from its systems” and halt any advertising and financial promotions.

bogleboogle

Speedster2 said:

Scottex99 said:

Biggest exchange in the whole industry, so yeah I know what they do and know the risks

https://www.ft.com/content/8bc0e5e0-2705-496d-a265-acccaffaee87

Binance and it's subsidiaries banned from any operations in the UK.

This is false. One subsidiary (BML) was banned by the FCA from undertaking any "regulated activity" - e.g. futures and options contracts. 

Binance have clarified:

https://twitter.com/binance/status/1409229415846981634

https://twitter.com/binance/status/1409229419080728580

bogleboogle

To the thread topic, you can currently earn 4-5% APY interest on USDT/BUSD on Binance (in 7-30 day lock-up periods). 

Risks: Binance/Tether could collapse. 

colsten

DrSyn said:

Investments are not covered By the FSCS Scheme.

This is not a correct statement. Check the facts on https://www.fscs.org.uk/what-we-cover/investments

Though Binance obviously do not have FSCS cover as they aren't even authorised by the FCA.

Gers

Binance: Financial watchdog FCA bans crypto-currency exchange https://www.bbc.co.uk/news/business-57632831