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How did you end up comparing Binance to a bank? The closest equivalent to what Binance is would be a broker. Now I challenge you to find any broker on the plan

How did you end up comparing Binance to a bank? The closest equivalent to what Binance is would be a broker. Now I challenge you to find any broker on the planet that can promise instant FX swap settlement on the same day for a cash account. Don't compare apples and bananas.

hef19898 4y ago
If I have someobe holding my crypto currency, that is as close to a crypto bank as it gets. Otherwise crypto woupdn't be money but some form of security. In which case, one has to ask, it is not regulated as such. And show me one broker that refused, regardless of transaction fees or other contractual stuff, customer wothdraels of funds. Other than those brokers that actually "lost" customer funds. Which is, by the way, also fraud.
- notpushkin 4y ago
  So if a securities broker is holding my USD, does this make USD a form of security and specifically not money?
- Galanwe 4y ago
  > If I have someobe holding my crypto currency, that is as close to a crypto bank as it gets. You don't get to define what is a bank, and "anyone holding my money" is definitely far from the definition of a bank. USDC is _not_ USD. When you deposit 100 USDC to Binance and ask to withdraw USD, you are effectively making an FX swap between two currencies, even if these currencies are 1:1 pegged. Again, there is simply no broker on the planet that will do that instantaneously. USD is 1 day settlement, you just won't get any better than that, unless the broker accepts to take the counterparty risk of paying you upfront. No existing broker will do that for any substantial amount.
  - imtringued 4y ago
    Ok but there is a big problem with your argument. If that is the case why did the Binance CEO have to make an announcement on Twitter if the business terms already include that USDC to USD settlement takes a business day? The banks being "late" is not unusual, it would happen every single day.
friendzis 4y ago
> Now I challenge you to find any broker on the planet that can promise instant FX swap settlement on the same day for a cash account. Don't compare apples and bananas. If I deposit Shmollars to a regulated brokerage they will hold my Shmollars in Shmollar denominated account and upon request will instantly (subject to technicalities of the transfer) transfer those Shmollars back. No FX swap needed. Now if they convert those Shmollars to anything else without my explicit request then they are no longer a brokerage and more comparable to an unregulated bank. Which is what Binance apparently did.

hef19898 4y ago

If I have someobe holding my crypto currency, that is as close to a crypto bank as it gets. Otherwise crypto woupdn't be money but some form of security. In which case, one has to ask, it is not regulated as such. And show me one broker that refused, regardless of transaction fees or other contractual stuff, customer wothdraels of funds. Other than those brokers that actually "lost" customer funds. Which is, by the way, also fraud.

notpushkin 4y ago
So if a securities broker is holding my USD, does this make USD a form of security and specifically not money?
Galanwe 4y ago
> If I have someobe holding my crypto currency, that is as close to a crypto bank as it gets. You don't get to define what is a bank, and "anyone holding my money" is definitely far from the definition of a bank. USDC is _not_ USD. When you deposit 100 USDC to Binance and ask to withdraw USD, you are effectively making an FX swap between two currencies, even if these currencies are 1:1 pegged. Again, there is simply no broker on the planet that will do that instantaneously. USD is 1 day settlement, you just won't get any better than that, unless the broker accepts to take the counterparty risk of paying you upfront. No existing broker will do that for any substantial amount.
- imtringued 4y ago
  Ok but there is a big problem with your argument. If that is the case why did the Binance CEO have to make an announcement on Twitter if the business terms already include that USDC to USD settlement takes a business day? The banks being "late" is not unusual, it would happen every single day.

friendzis 4y ago

> Now I challenge you to find any broker on the planet that can promise instant FX swap settlement on the same day for a cash account. Don't compare apples and bananas. If I deposit Shmollars to a regulated brokerage they will hold my Shmollars in Shmollar denominated account and upon request will instantly (subject to technicalities of the transfer) transfer those Shmollars back. No FX swap needed. Now if they convert those Shmollars to anything else without my explicit request then they are no longer a brokerage and more comparable to an unregulated bank. Which is what Binance apparently did.