Binance has released its 2022 end-of-year report, summarizing the key facts, statistics, and developments across the vast ecosystem.
key Takeaways:
- In 2022, Binance made significant progress on the regulatory and compliance side and continued to deliver the best user experience in Web3.
- In the aftermath of cascading events that shook the core of the industry, the exchange demonstrated resilience and immediately focused on rebuilding trust in the blockchain ecosystem and its massive potential to improve people’s lives.
- Looking ahead, Binance stands on a solid foundation and is financially healthy. We innovate, listen to its users, and lead by example.
“As the new year gets underway, we took a moment to pause and reflect on the achievements and statistics that defined our 2022”.
Binance recognizes that 2022 was unquestionably a challenging year for everyone in the blockchain and crypto space.
In the face of major headwinds, the Company remained steadfast in prioritizing user experience, products with real-world value, and — most importantly — a healthy, sustainable path forward for the entire industry. Below are some key takeaways from Binance’s end-of-year report that released today last week.
The Big Picture: Security, Regulation, and Compliance
The team at Binance believes that appropriate regulatory frameworks and a safe ecosystem that protects its users underpin the road to the mass adoption of crypto and blockchain.
But, as many in this space would know, stating your core values is one thing, and applying them is another.
Safe to say, Binance’s actions in the past year speak for themselves. For starters, they secured licenses, registrations, and approvals in 14 jurisdictions by the end of 2022.
Leveraging its extensive experience, the company continued to assist regulators and policymakers in developing practical regulatory frameworks for digital assets.
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“We also increased our security and compliance team’s headcount by 500%, drawing in some of the industry’s best talent.
“We committed significant time and effort to conduct more than 70 law enforcement workshops on topics related to crypto, blockchain, and combatting digital financial crime. With an average response time of three days, we processed over a staggering 47,000 law enforcement requests. We also became the first blockchain and crypto organization to join the National Cyber-Forensics and Training Alliance (NCFTA)
“Inside the Binance ecosystem, we implemented key upgrades to our identity verification (know-your-customer, or KYC) processes, including real-time photo-quality assessment, faster verification in several regions, and a significantly wider range of supported ID documents”.
Building Trust
After a series of shocking bankruptcies within the crypto space, which didn’t help improve the public’s sentiment amid the harsh macroeconomic environment, the team worked to build and restore trust in not only Binance, but also the larger ecosystem.
The CEO and founder, Changpeng Zhao (CZ), released a framework of six principles, which you can read here, to offer a path for centralized crypto exchanges regain the trust of users and regulators.
Leading the charge for transparency, the company launched a proof-of-reserves (PoR) system that anyone can use to verify that user funds are held 1:1 on Binance, in addition to a proof of collateral for all Binance Bridge-pegged tokens.
“And to safeguard our 128 million users in the event of an emergency, we increased the value of our Secure Asset Fund for Users (SAFU) back to $1 billion”, the report reads.
Supporting the Industry and Beyond
2022 saw several promising projects fall victim to events out of their control. “We continued to support fellow peers who seek to leave a positive, lasting impact on the space and deliver value to end users.
“In November 2022, we committed an initial $1 billion, pledging to increase our contribution to $2 billion if needed, to our new Industry Recovery Initiative. And through Binance Labs, we’ve invested more than $500 million to support Web3 and blockchain innovation, started the fifth season of our Incubation Program, and approved or closed 14 strategic M&A deals, as well as 61 token venture deals.
“While other companies in and out of crypto experienced major layoffs and hiring freezes, we scoured the globe for more talent, increasing our total headcount to more than 7,500 employees coming from more than 100 nationalities.
“We also bolstered our philanthropic and humanitarian efforts through the Binance Charity Foundation (BCF), including, among other initiatives, a 10 million BUSD donation to address the humanitarian crisis in Ukraine and the launch of a first-of-its-kind Binance Refugee Crypto Card.
Events and Products
2022 was a busy year for Web3 events. Binance celebrated its fifth anniversary in style with over 3,000 in-person attendees and a staggering 1.5 million of those who followed virtually, against the stunning backdrop of Paris.
https://www.youtube.com/watch?v=bw8rtfZUqFU&t=12s
“Moreover, we hosted and attended some of the biggest events in technology, including two Binance Blockchain Weeks in Dubai and Paris, as well as Lisbon’s annual Web Summit. Beyond the major events, we took the time to connect with millions of Binance users worldwide through hundreds of online and in-person community events.
“From a simple, fast, and secure crypto exchange to now a sprawling Web3 ecosystem, we’ve only continued to build and add more tools, products, and functionalities. Every new offering on Binance is embedded with robust security protocols and the work of a user-focused product team.
“The year tested the foundations of our nascent industry and pushed Web3 companies to try harder and do better. On our end, we’re prepared to assist and coordinate industry-wide efforts to restore trust and build a secure foundation for welcoming the next billion crypto users.
Despite growing at a staggering pace, we’ve never forgotten where we started — to provide a secure, user-friendly digital asset experience. While much work lies ahead, we believe if you’re doing what’s right for the user, 2023 will be a great year for more growth, adoption, and innovation. At Binance, our core approach will remain the same — put users first, innovate, and lead the industry by example, not words”.
