Binance, one of the world’s largest cryptocurrency exchanges has been considered unsuitable for institutional investors by Weiss Ratings. According to a post on the company’s official Twitter page, the exchange is working on providing “a new sub-account feature” for institutional investors but it doesn’t make the exchange suitable for the investors.
“Binance is looking to aid institutional investors with a new sub-account feature. We don’t think institutional investors should utilize Binance – it’s NOT an institutional grade exchange. Has no audits, unknown location – it’s shady… crypto altcoins bitcoin BTC”
Binance’s new feature is also intended to favor high profile individual investors in addition to institutions by allowing such investors to register up to 200 trading accounts under a single profile. The new feature also allows regulation of the level of access and control for diverse accounts.
According to Binance, this gesture is motivated by the surge in the number of institutional accounts on the exchange’s trading platform which suggests an explosive increase in the number of such investors soon. The company’s CFO Wei Zhou said:
“We are seeing an influx of institutional accounts in the space and anticipate institutional demand to pick up substantially in the coming months. One of our key focuses is to provide a platform that services the needs of these clients as well as our retail users.”
Weiss ratings is a research and analysis company that provides consumers and business professionals with valuable information based on their research to enable them make proper decisions based on financial strength ratings of financial institutions.
Its research covers both U.S and global banks on which it gives financial strength ratings. It also gives independent investment ratings on publicly traded companies, mutual funds, and exchange-traded funds.
The company’s position may be because it is not convinced that Binance possesses the required qualities to be an institutional grade exchange which includes adequate security, integration with trading systems, capacity for large volume transactions and regulatory compliance. Most importantly, Binance does not appear on the available lists of institutional grade exchanges.
Being a top crypto exchange, Binance could be devastated by the opinion of Weiss Ratings as it is a prominent rating company recognized globally. One option for Binance may be to upgrade to an institutional grade exchange so that the institutional investors showing interest in the exchange can be retained. In the meantime, what effect will this information have on Binance’s performance in the coming days?
The post Binance Not an Institutional Grade Exchange and ‘Shady’ – Weiss Ratings appeared first on ZyCrypto.