Crypto Exchange Regulatory Risks: Is It Time to Diversify Your Portfolio?

[Faisal2202]

I recall that Zhao, the founder of Binance, recently completed his 4-month sentence for violating anti-money laundering protections. These issues with popular exchanges are concerning, especially since I have investments in them.
Who knows what might happen tomorrow? Should I consider consolidating all my assets into one exchange to be on the safer side? I don't want to risk waking up one day to find that the government has frozen all assets due to the exchange owner's negligence or wrongdoing.

What do you mean that you have invested in Binance, are you referring to investing in some coin on Binance exchange and calling it this way! If yes, that you can transfer your coins from that exchange to any other if you feel unsafe here, NFA.

I like your thought because I also have the same one, but I trust the exchange I have kept my funds in, but I have a few funds moved to other coins as well, I know how the experience of what it feels like to have funds on an exchange and seeing that exchange name in news that hey SEC has opened a case against this exchange hehe.

The last time Kucoin had this, I had few funds but not too much, like a few dollars only.

[ZAINmalik75]

Yeah I believe that's why they' currently have over 100m users rn. And also compliance, cos they're compliant with most local authorities they operate in. They've got Mica, Fca compliance, ISO cert and many more..plus look at their current protection funds. It's well equipped

I also agree with you about non custodian wallets. But we shouldn't downplay the role of exchanges in today's crypto setting..

You are absolutely right about it and thanks for sharing these statistics these are enough to get an idea about an exchange but still we should hold our long term investments on non-custodial wallets because we have seen all the whales after buying coins from exchanges they move their funds from any exchange even from Coinbase to a non custodial wallet.

They don't even trust Coinbase and Binance which are the top tier 1 exchange so we should also move our funds from exchanges to wallets where we own the keys and own the funds.

[Stompix]

Should I consider consolidating all my assets into one exchange to be on the safer side?

Not your keys, not your coins!
Rather than thinking about consolidating your coins on some exchange, you should ask yourself why keeping the coins on an exchange at all.

Bitget is a good exchange and they have all their audits clear and publically available

Really? Then what's this about? 
https://www.bafin.de/SharedDocs/Veroeffentlichungen/DE/Verbrauchermitteilung/unerlaubte/2024/meldung_2024_01_29_bidget.html
https://www.iosco.org/v2/investor_protection/?subsection=investor_alerts_portal&id=30127&entity=Canada-Bitget-Limited

[armanda90]

You are absolutely right about it and thanks for sharing these statistics these are enough to get an idea about an exchange but still we should hold our long term investments on non-custodial wallets because we have seen all the whales after buying coins from exchanges they move their funds from any exchange even from Coinbase to a non custodial wallet.

They don't even trust Coinbase and Binance which are the top tier 1 exchange so we should also move our funds from exchanges to wallets where we own the keys and own the funds.

Have many people or trader still not trust yet with top exchange market such as Binance or Coinbase regarding how easily most top exchange like FTX got bankrupt and scam, its most safe when saving cryptocurrency in wallet and have own self controlling about private key without depend on third party as exchange market.
But for short term trading is not worth it saving assets in wallet by trading at Dapp exchange because get pay higher fees than trade at exchange market, so if want saving for long term recommended at wallet but for short term use Binance or another top exchange market.

[Z-tight]

Did you say you have all your funds in Bitget, i hope you are not one of their many shillers who try to put their name out as many times as possible daily. You should not have your funds stored in Bitget or any other centralized exchange for that matter, only use self custodial open source wallets. Not your keys, surely not your coins.

[ZAINmalik75]

Really? Then what's this about? 
https://www.bafin.de/SharedDocs/Veroeffentlichungen/DE/Verbrauchermitteilung/unerlaubte/2024/meldung_2024_01_29_bidget.html
https://www.iosco.org/v2/investor_protection/?subsection=investor_alerts_portal&id=30127&entity=Canada-Bitget-Limited

There is a case against Binance and Kucoin and this little ban only in Germany seems to be a small thing as it might get banned in many other countries soon but once they comply with their rules Bafin then they will be allowed in Germany too.

I although was not aware of this but it still seems to be not a big thing that we should leave it once for all because unless we are not Germans we can use it right?

[vegasus]

I recall that Zhao, the founder of Binance, recently completed his 4-month sentence for violating anti-money laundering protections. These issues with popular exchanges are concerning, especially since I have investments in them.
Who knows what might happen tomorrow? Should I consider consolidating all my assets into one exchange to be on the safer side? I don't want to risk waking up one day to find that the government has frozen all assets due to the exchange owner's negligence or wrongdoing.

What do you mean that you have invested in Binance, are you referring to investing in some coin on Binance exchange and calling it this way! If yes, that you can transfer your coins from that exchange to any other if you feel unsafe here, NFA.

I like your thought because I also have the same one, but I trust the exchange I have kept my funds in, but I have a few funds moved to other coins as well, I know how the experience of what it feels like to have funds on an exchange and seeing that exchange name in news that hey SEC has opened a case against this exchange hehe.

The last time Kucoin had this, I had few funds but not too much, like a few dollars only.

Maybe that's his concern that it will be like FTX before. especially because of the previous CZ issue, it's just that, in my opinion, it's a bit different. Because CZ has also received his sanctions and is now free. Binance is also still stable as a top exchange

Maybe he put some assets on the Binance exchange and he's worried that the Binance exchange will go bankrupt like FTX. Well, of course we have to be vigilant, but so far, it seems like everything is going well, and we'll just keep an eye on how it goes in the future

[Z-tight]

Maybe he put some assets on the Binance exchange and he's worried that the Binance exchange will go bankrupt like FTX. Well, of course we have to be vigilant, but so far, it seems like everything is going well, and we'll just keep an eye on how it goes in the future

Everything always look like it is going well with these exchanges until they are hacked or they go bankrupt, i am not sayiing that binance is going to collapse, however it is something that is not impossible. That is why we only recommend self custodial wallet to store crypto.

[Stompix]

this little ban only in Germany

Austria https://www.fma.gv.at/bitget-bg-limited/
France https://www.amf-france.org/en/news-publications/news-releases/amf-news-releases/amf-reminds-public-cryptoasset-trading-platform-bitget-blacklisted
Japan https://www.fsa.go.jp/policy/virtual_currency02/bitget_limited_keikokushiryo.pdf
Hong Kong https://fintechnews.hk/28671/blockchain/sfc-warns-against-cbex-group-and-bitget-pro-for-crypto-fraud/
Canada https://www.iosco.org/v2/investor_protection/?subsection=investor_alerts_portal&id=30127&entity=Canada-Bitget-Limited

I bet there are a dozen more if I strat searching country but country.

So no way in hell I'm going to trust that exchange, especially after the shilling that;s going on here and on  btctalk from newbies promoting it.

[ZAINmalik75]

Austria https://www.fma.gv.at/bitget-bg-limited/
France https://www.amf-france.org/en/news-publications/news-releases/amf-news-releases/amf-reminds-public-cryptoasset-trading-platform-bitget-blacklisted
Japan https://www.fsa.go.jp/policy/virtual_currency02/bitget_limited_keikokushiryo.pdf
Hong Kong https://fintechnews.hk/28671/blockchain/sfc-warns-against-cbex-group-and-bitget-pro-for-crypto-fraud/
Canada https://www.iosco.org/v2/investor_protection/?subsection=investor_alerts_portal&id=30127&entity=Canada-Bitget-Limited

I bet there are a dozen more if I strat searching country but country.

So no way in hell I'm going to trust that exchange, especially after the shilling that;s going on here and on  btctalk from newbies promoting it.

There is not way I am going to use it again too I might for small amounts as I join small airdrops sometimes and there is a claim most of the time in this exchange but it just need to base usage otherwise I won't hold my funds on bitget ever too.

I was unaware of these bans and restrictions, this is enough to red flag and adding the spam here and on bitcointalk too that also raise question who is paying them to spam on these two platforms.

[armanda90]

Everything always look like it is going well with these exchanges until they are hacked or they go bankrupt, i am not sayiing that binance is going to collapse, however it is something that is not impossible. That is why we only recommend self custodial wallet to store crypto.

Since have been using Binance more than six years, I faced many time Binance exchange got hack and maintance for withdrawing assets but its happening for awhile only before all withdrawing return back normally. I can't predicting with future how possibility Binance get bankrupt or not but learning after many time hack cases faced by Binance always success recovery and the market return back normally.
One most important from Binance exchange if any hack case only withdrawing feature are stopping awhile but we can trade as normally.

[Mia Chloe]

I was unaware of these bans and restrictions, this is enough to red flag and adding the spam here and on bitcointalk too that also raise question who is paying them to spam on these two platforms.

There's no way or rather no explanation to storing coins on an exchange. Before now i was also unaware of the banks are restriction. The truth is with or without awareness post like this people will still store their coins on exchanges. I think one of the most reasonable situations of having some coins on an exchange is if you do trade on that exchange if not I see no reason to hodl some coins there.

I think sometimes what compels people to making use of these exchanges to hodl their coins is because of the stake services they offer.

[Z-tight]

One most important from Binance exchange if any hack case only withdrawing feature are stopping awhile but we can trade as normally.

Most exchanges do this when they are hacked and i don't see how that is an advantage to the exchange if you can trade but cannot withdraw. I see you are very happy with binance, there is nothing bad about that, but take note that if binance gets hacked and they lose a significant amount of funds, then they would be in trouble, do not believe that any exchange is too big to fail.

[ZAINmalik75]

There's no way or rather no explanation to storing coins on an exchange. Before now i was also unaware of the banks are restriction. The truth is with or without awareness post like this people will still store their coins on exchanges. I think one of the most reasonable situations of having some coins on an exchange is if you do trade on that exchange if not I see no reason to hodl some coins there.

I think sometimes what compels people to making use of these exchanges to hodl their coins is because of the stake services they offer.

This is a good reason for them some offer staking, some offer trading competition like perks, some offer interest etc. But the amount needs to be big to benefit from these perks. I also prefer to hold coins on non custodial wallets where we own the keys but like you explanied only those hold their funds on exchange who either have to trade.

Another reason in my opinion is some people hold their loong term holdings on exchanges because they want to make quick sellings and buying in congested times to get early benefit otherwise it would be late and lose will be made too.

[ZAINmalik75]

Have many people or trader still not trust yet with top exchange market such as Binance or Coinbase regarding how easily most top exchange like FTX got bankrupt and scam, its most safe when saving cryptocurrency in wallet and have own self controlling about private key without depend on third party as exchange market.
But for short term trading is not worth it saving assets in wallet by trading at Dapp exchange because get pay higher fees than trade at exchange market, so if want saving for long term recommended at wallet but for short term use Binance or another top exchange market.

I agree for short term trades we should hold our funds on exchanges if the coin is available on them and for long term holdings we should use wallets of which we should own the private keys because if we don't own the keys then we don'town the funds.

For short term if we hold our funds on wallets we have to pay fee again and again to move them here and there, therefore we that's not reliable, the reliable way is to hold them on exchange.