5 ms·

I pulled my funds from binance, writings on the wall.

by lugged 5y ago

wpietri 5y ago
Yup. Regulators have given cryptocurrency companies a surprisingly long leash. But at least in the US, that's changing for sure.
Animats 5y ago
Well, as large amounts of funds are pulled from Binance, we will find out if they've been stealing. A good regulatory step for the US would be to require that it can't be harder to withdraw than to deposit. Any ID requirements have to be completed before depositing, not withdrawing. And all withdrawals must be processed by T+2. Same rules as regular brokers.
- wyldfire 5y ago
  > And all withdrawals must be processed by T+2. I've never seen this notation before. Does it refer to blocks, hours, or (gasp!) days?
  - jcranmer 5y ago
    Given the typical settlement time of financial systems, I would assume it's days.
  - Animats 5y ago
    Trade day plus 2 business days.[1] This is the standard in the securities industry for most transaction settlements. Not paying on time is called a "fail". There are penalties. For US stockbrokers, FINRA enforces them. In the real world, a broker failing to pay out cash on time to multiple customers is a Big Deal. Alerts come up on Bloomberg terminals. It's headline news. Institutional investors stop sending trades to that broker and start demanding collateral. The SEC, FINRA, NASDAQ, NYSE, the Fed, and other become involved. See the collapse of Bear Sterns. [1] https://en.wikipedia.org/wiki/T%2B2 https://en.wikipedia.org/wiki/T%2B2
    - randomhodler84 5y ago
      Completely dumb and enabling of high finance scams. Instant settlement means nobody can play games. It fixes this. Embrace this.
      - Animats 5y ago
        Some delay is useful in catching scams. See [1]. But not much delay. 2 days is a useful compromise. [1] https://en.wikipedia.org/wiki/Bangladesh_Bank_robbery https://en.wikipedia.org/wiki/Bangladesh_Bank_robbery
        randomhodler84 5y ago
        You have to catch them before settlement — that is the only logical and safe way. Any delay just lets the supposed holder mess about with stealing from one to pay another. If you act like every action is permanent, irrevocable… you conduct your life with care. It’s a radical deviation from the fun and games occurring today.
        xeromal 5y ago
        Not sure what the sentence means
- randomhodler84 5y ago
  The reality is they don’t need to. Pegged tokens are the ultimate way to fractional reserve. See tether. Plenty of binance pegged tokens to handle any loss. Best thing is when binance has to buy themselves whole, they just just burn the tokens on their chain. Genius. Not your keys, not your coins. Also that t+2 thing is just allowing shenanigans. When Rh forces the industry into instant settlement next year (hope!!) we will see who is truly been playing funny money. Looking at you citadel.
bombcar 5y ago
When you pull funds how do you transfer them out? As fiat or Bitcoin or tether or?
- arthurcolle 5y ago
  Stablecoin would work, BTC or ETH would work. It's not that hard.
- sbierwagen 5y ago
  If the UK makes it hard to trade bitcoin, you can also guess that the value of bitcoin denominated in GBP will go down dramatically. You probably don't want to be holding tether in that case.
  - jimmydorry 5y ago
    In my experience, it's typically been the opposite. Countries with harsher capital controls / make it harder to use Bitcoin, attract a premium in the purchase / sale of Bitcoin. South Africa for example has very strict capital controls, hence the price to buy or sell Bitcoin is higher than elsewhere. The catch is that you can't easily move fiat out of the South African economy, which makes abritrage, to take advantage of this imbalance, impossible.
    - sbierwagen 5y ago
      The UK does not have South African capital controls. Unless it's for proceeds of criminal activities, in which case you don't really want to enter every transaction in a global immutable ledger!
  - celticninja 5y ago
    It hasn't done that and it is unlikely that they will. There are UK based exchanges, the issue here is with binance specifically and not cryptocurrencies in general.

I pulled my funds from binance, writings on the wall.

by lugged 5y ago

I pulled my funds from binance, writings on the wall.

Yup. Regulators have given cryptocurrency companies a surprisingly long leash. But at least in the US, that's changing for sure.

Animats 5y ago

Well, as large amounts of funds are pulled from Binance, we will find out if they've been stealing. A good regulatory step for the US would be to require that it can't be harder to withdraw than to deposit. Any ID requirements have to be completed before depositing, not withdrawing. And all withdrawals must be processed by T+2. Same rules as regular brokers.

wyldfire 5y ago
> And all withdrawals must be processed by T+2. I've never seen this notation before. Does it refer to blocks, hours, or (gasp!) days?
- jcranmer 5y ago
  Given the typical settlement time of financial systems, I would assume it's days.
- Animats 5y ago
  Trade day plus 2 business days.[1] This is the standard in the securities industry for most transaction settlements. Not paying on time is called a "fail". There are penalties. For US stockbrokers, FINRA enforces them. In the real world, a broker failing to pay out cash on time to multiple customers is a Big Deal. Alerts come up on Bloomberg terminals. It's headline news. Institutional investors stop sending trades to that broker and start demanding collateral. The SEC, FINRA, NASDAQ, NYSE, the Fed, and other become involved. See the collapse of Bear Sterns. [1] https://en.wikipedia.org/wiki/T%2B2 https://en.wikipedia.org/wiki/T%2B2
  - randomhodler84 5y ago
    Completely dumb and enabling of high finance scams. Instant settlement means nobody can play games. It fixes this. Embrace this.
    - Animats 5y ago
      Some delay is useful in catching scams. See [1]. But not much delay. 2 days is a useful compromise. [1] https://en.wikipedia.org/wiki/Bangladesh_Bank_robbery https://en.wikipedia.org/wiki/Bangladesh_Bank_robbery
      - randomhodler84 5y ago
        You have to catch them before settlement — that is the only logical and safe way. Any delay just lets the supposed holder mess about with stealing from one to pay another. If you act like every action is permanent, irrevocable… you conduct your life with care. It’s a radical deviation from the fun and games occurring today.
        xeromal 5y ago
        Not sure what the sentence means
randomhodler84 5y ago
The reality is they don’t need to. Pegged tokens are the ultimate way to fractional reserve. See tether. Plenty of binance pegged tokens to handle any loss. Best thing is when binance has to buy themselves whole, they just just burn the tokens on their chain. Genius. Not your keys, not your coins. Also that t+2 thing is just allowing shenanigans. When Rh forces the industry into instant settlement next year (hope!!) we will see who is truly been playing funny money. Looking at you citadel.

bombcar 5y ago

When you pull funds how do you transfer them out? As fiat or Bitcoin or tether or?

arthurcolle 5y ago
Stablecoin would work, BTC or ETH would work. It's not that hard.
sbierwagen 5y ago
If the UK makes it hard to trade bitcoin, you can also guess that the value of bitcoin denominated in GBP will go down dramatically. You probably don't want to be holding tether in that case.
- jimmydorry 5y ago
  In my experience, it's typically been the opposite. Countries with harsher capital controls / make it harder to use Bitcoin, attract a premium in the purchase / sale of Bitcoin. South Africa for example has very strict capital controls, hence the price to buy or sell Bitcoin is higher than elsewhere. The catch is that you can't easily move fiat out of the South African economy, which makes abritrage, to take advantage of this imbalance, impossible.
  - sbierwagen 5y ago
    The UK does not have South African capital controls. Unless it's for proceeds of criminal activities, in which case you don't really want to enter every transaction in a global immutable ledger!
- celticninja 5y ago
  It hasn't done that and it is unlikely that they will. There are UK based exchanges, the issue here is with binance specifically and not cryptocurrencies in general.