Binance has taken a big step this time by launching the C2C strictly selected area and also establishing a compensation mechanism. This compensation mechanism is crucial; in traditional C2C transactions, if funds were frozen, one could only anxiously wait with no recourse and had to accept the loss.
But this time Binance is different. During the testing period from July 29 to August 17, as long as it’s in the strictly selected area, if judicial freezing occurs due to certified merchant issues, Binance will directly compensate 50%, with a maximum single compensation of 20,000 USDT, equivalent to about 160,000 RMB.
Moreover, the compensation scope is clearly stated, targeting sellers who face freezing due to advertisers, preventing anyone from exploiting loopholes. This indicates that Binance is willing to take on risks themselves and wants to use compensation costs to instill confidence in users about the market, which is indeed bold.
The strict selection mechanism is impressive, with rigorous screening of resident merchants, delivering a fatal blow to the gray chain of the black market. The strictly selected area prioritizes the entry of large advertising firms and 'Shielded Advertisers.'
Large advertising firms engage in substantial transactions and are cautious about damaging their reputation; the 'Shielded Advertiser' has the protection of Binance's internal risk control system, ensuring credibility.
Now those money laundering groups involved in high-frequency small transactions are in trouble; they can't enter the strictly selected area, and even if they manage to sneak in, causing users' cards to be frozen, Binance compensates users 50%. If they compensate too much, they will definitely be scrutinized, greatly increasing the cost of money laundering for the black market and severely impacting the gray industry chain in the C2C sector.
Binance's move might just change the entire industry, triggering a 'guarantee arms race.' For users, who wouldn't want safer transactions?
In places like Egypt and Brazil, where fiat trading is active, users see Binance providing such strong guarantees and might consider switching from other platforms to Binance.
Other exchanges probably won't sit still either; I've heard that a certain second-tier exchange is holding an overnight meeting and will release a similar plan next week. Previously, some exchanges used decentralization to shirk responsibility and engage in regulatory arbitrage, but now Binance has opened the door to compliance, potentially accelerating the implementation of global regulatory policies.
Overall, Binance has made sacrifices for its own interests but has brought security to users and struck a blow against the black market. In the future, it might truly reshape the industry landscape. However, it is still in the testing phase, and we need to continue observing the final effects.
But in any case, Binance's operations this time have brought new changes and hope to the crypto industry.#以太坊十周年 #美联储利率决议 