Binance has long been the largest cryptocurrency exchange by some distance, despite almost no publicly available financial information allowing anyone to do any proper due diligence on their operations.
In this blog post, we will give you an overview of some of the key statistics known to date about Binance’s revenues, customer reserves, and user statistics.
- Founded: 2017
- Headquarters: Cayman Islands (unconfirmed)
- Founder: Changpeng Zhao (CZ) & He Yi
- Number of Employees: 7,400+
- Coins available to trade: 350+
- Trading Pairs: 1,400+
Binance has grown massively through its constant innovation and the sheer breadth of services they offer. No other exchange can compete on their level right now.
But did you know that Binance has never confirmed which company holds their main exchange Binance.com? It is believed to be held by a company in the Cayman Islands.
Many journalistic efforts to dig deep into Binance’s financial records through their web of private companies across multiple markets have come up short. Most of these companies were not reporting any material trading.
What Services Does Binance Provide?
To get a better idea of Binance’s business model, let’s first look at a list of services they offer:
- Exchange services allow you to buy/sell crypto assets
- Advanced trading
- Self-Custody Wallets
- Institutional, VIP, and business accounts
- E-commerce business payments
- Prepaid Cards
- Trading bots
- Crypto loans
- Derivatives such as options, futures, and leveraged tokens.
Ranking of Binance vs its Competitors
Below is a comparison of the typical 24-hour trading volume of Binance versus some of its competitors. Binance remains the biggest player in the market by far.
|Exchange||24-Hour Trading Volume (millions)|
In terms of daily trading volume, Binance is almost nine times as large as its nearest competitor.
Binance reported Key User Statistics
Below is a summary of some key user statistics that were reported for Binance in their 2022 ‘End of Year Report’:
- Average Daily Volume: $65bn
- Spot Transactions: $300bn
- Registered Users: 128 million
- Binance cards issued in EEA: 1.8 million
- Binance P2P users: 14 million
- Binance Pay users: 22 million
Please note these figures have not been audited by any third party.
As Binance is a private limited company with a complex structure designed to hide its financial activities, we can only rely on anecdotal evidence of Binance’s finances.
Binance does not disclose basic financial information such as revenues, net profit, monthly transacting users, and cash reserves.
Based on research conducted by media outlets, we can approximate that Binance’s revenue in 2022 ranged from $11-12bn. For context, one of Binance’s main competitors, Coinbase, recorded revenue of $3.15bn in 2022.
- Reuters estimate Binance’s Revenue in 2022 to be approximately $11bn, made up of $4.6bn revenue on spot trading and $6.4bn on derivatives.
- CryptoQuant research estimated that Binance’s Revenue in 2022 was approximately $12bn (which would be 10X growth over the previous two years).
We are unlikely to get a further glimpse into Binance’s financials until the time arises when they either decide to go public or need to raise additional venture capital from the private market.
Binance AUM (Assets Under Management)
Based on their Proof of Reserves reporting, we can get an idea of what level of assets under management Binance has.
Proof of reserves was first reported in November 2022 in response to turmoil in the industry when FTX collapsed. Binance’s hand was forced to show that it had adequate reserves to cover its customer’s assets on deposit.
The table below represents customer net balances, and equivalent assets binance hold in reserve to ensure customer balances are safe. Binance claims that each individual can verify that their assets on the platform through their Merkle Tree is a cryptographic tool.
This report only summarises reserves held for 28 of the 350+ crypto assets Binance offers on their spot exchange. We have calculated the value of these assets to be $65.7 billion, but this will only be a fraction of the total customer assets held in custody. The table below is ranked by “$ value”.
|#||Cryptocurrency||Customer Net Balances||Binance Net Balances||Ratio||Price @ 3/7/2023||$ Value|
In recent reports, the US arm of Binance’s global operation Binance U.S, had an estimated $2.2 billion of customer funds that were potentially at risk due to the legal situation it finds itself in. This is according to reports from the US Federal regulators, who are keeping a close eye on Binance since it has been sued by the SEC.
“The SEC on June 5 sued Binance, its CEO and founder Changpeng Zhao and Binance.US’s operator, alleging that Binance artificially inflated its trading volumes, diverted customer funds, failed to restrict U.S. customers from its platform and misled investors about its market surveillance controls.” Reuters
Binance remains the top-dog cryptocurrency exchange in the world, as evidenced by its daily trading volumes. Outside of this metric, it is difficult to dig deeper into user statistics and the financial performance of Binance’s group of private companies.
The best information we have to go on is purely guesstimates.
On all fronts, Binance is now facing challenges, and the next couple of years will determine whether it can survive the increased regulatory scrutiny or fall like many of its previous competitors.
If you are interested in reading about the statistics of one of Binance’s closest rivals, Coinbase, check out the Coinbase Statistics article.
What is the difference between Binance and Binance U.S.?
Binance US was created specifically to enable Binance to offer its services to the valuable US market. Many of the products and services offered on their main Binance.com platform would not comply with U.S. regulations. Therefore, this was a workaround they created to be still able to target U.S. consumers.
Will Binance go Public?
CZ has stated publicly in recent years that Binance was targeting an IPO in 2024. However, this may now be derailed by ongoing litigation with US regulators.
Is Binance safe?
Binance, like all other cryptocurrency exchanges, are not forced to comply with stringent regulations to safeguard customer assets like their investment broker peers.
As a result, if the worst were to happen and Binance were to become insolvent, you would have no recourse or claim to your assets. We have already seen this play out many times recently when customers Celsius and FTX lost virtually all their assets.
Does Binance hold any licenses?
Binance often boasts about the licenses, registrations, and authorisations it holds.
In Europe, Binance has been managed to be registered as a VASP/DASP (Virtual/Digital Asset Service Provider) in the following countries:
- France: Binance Italy S.R.L
- Spain: Binance Spain, S.L
- Italy: Binance Italy S.R.L.
- Lithuania: Bifinity UAB
- Poland: Binance Poland Spółka z Ograniczoną Odpowiedzialnością
They have also managed to register as a Financial Institution in Sweden. Binance Nordics AB has been granted a license for management and trading in virtual currency by the Swedish Financial Supervisory Authority.
However, the regulatory environment in the EU will become a lot more challenging for Binance when the Markets in Crypto Assets (MiCA) legislation starts to be written law next year. Binance has recently been told to cease offering services to customers in Belgium and the Netherlands and has voluntarily decided to leave the Cyprus market.
Another high-profile market that Binance has left is the Canadian market.
In the Asia Pacific region, Binance has been granted the following:
- Australia: InvestbyBit Pty Ltd (trading as Binance Australia) has been granted a Digital Currency Exchange (DCE) provider registration by the Australian Transaction Reports and Analysis Centre (AUSTRAC).
- New Zealand: Investbybit Limited (trading as Binance New Zealand) is registered on the New Zealand register of financial service providers.
- Japan: Binance acquired a local crypto exchange which allows them to operate as a Crypto Asset Exchange Service Provider in Japan.
Binance also holds licenses, registrations, and authorisations for different service levels in South Africa, Thailand, Mexico, Abu Dhabi, Indonesia, Bahrain, Dubai, and Kazakhstan.
What would happen if Binance ceased trading in the market I am in?
What we have seen happen in the Netherlands is that when Binance was ordered to leave the market, new customers were restricted from signing up, existing customers were restricted from purchasing more crypto assets or trading one cryptocurrency for another, and are also not able to make any further deposits to their account.
Users are, however, free to withdraw their assets from the platform.