Note that Binance chief executive Changpen Zhao was also faced with fake news this week. In particular, some sources have reported that Zhao is allegedly being hunted by Interpol. That said, the Twitter account that posted the fake screenshot allegedly from the Interpol website has been deleted.

In general, such attacks are not uncommon for Binance, which is the biggest player among centralised cryptocurrency exchanges. That said, in this case, Zhao believes that rival platforms could be behind what happened.

What will happen to the Binance crypto exchange in the future?

Crypto exchanges can be divided into two categories – centralised (CEX) like Binance and Coinbase and decentralised (DEX) like Uniswap and Orca. Binance is a fully centralised exchange, which means that users’ funds are stored in its addresses, the private keys of which are controlled by its employees. Such a trading platform also fully controls the actions of users in terms of withdrawals of digital assets to third-party wallets.

Unlike centralised platforms, in order to trade on DEX, it is sufficient to have a private key for one's own cryptocurrency wallet. Accordingly, there is direct interaction with the user's non-custodial wallet and smart contract, i.e. without intermediaries. The user's wallet also stores the user's assets, which are transacted without the control of any centralised platform.

A hybrid exchange is a mix of centralized and decentralized platforms. In fact, one of Zhao’s Twitter followers suggested that he reform Binance into the type of hybrid exchange where funds and transactions would be done on a decentralised basis, but liquidity would remain at the level of a top centralised platform. And that’s what Chanpen’s response was.

Easier said than done. It is also necessary to ensure the security of funds. It also needs to make sure that the counterparty to the transaction gets the money and that no one can cheat the system, meaning that the settlement has to be done in real time. Blockchain capacity does not yet allow for this to happen.


Note that a similar solution already exists. In particular, the developers of the already familiar WOO Network project are creating both a centralized solution in the form of the WOO X crypto exchange and decentralized projects like WOOFi and WOOFi DeX. Most interestingly, the latter platform has an interface identical to the look and feel of a regular centralised exchange. That means users should not feel any difference when using different products.

It is also important to note that this decentralised exchange has good liquidity. The reason for this is the pooling of liquidity from different trading platforms, which enables them to interact with each other in a much more efficient way.


According to Zhao, even the scope of decentralised exchanges is in some ways centralised. Here, users need more variety. Here’s a relevant quote from the entrepreneur to that effect.

We need more decentralised exchanges. PancakeSwap has the most users. Uniswap has the most blockchain funds in smart contracts. It’s still ‘too centralised – and yes, I know how that sounds on my part. There needs to be more options available.

According to CryptoSlate’s sources, pressure from US regulators on the crypto industry has really spurred the growth of the decentralised exchanges sphere. Since the beginning of the year and by the end of March, trading volumes on DEX have increased by around 100 percent to more than $133 billion.

At the same time, trading volumes on decentralised exchanges fell by about $3 billion year on year. In March 2022, the total trading volume on DEX platforms was $136.4 billion.

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That said, crypto investors have been slow to declare their earnings on exchanges to the tax authorities. According to a recent study by platform Divly, only 0.53 per cent of digital asset owners on average worldwide have interacted with their country’s tax authorities – this is the 2022 data. Of all regions, the figure is highest in Oceania, where it is 3.25 per cent. In Europe, the figure is 1.52 per cent.

In terms of tax payments, the US leads by a large margin. In second and third place are Japan and Germany.

The average global tax payment rate from cryptocurrencies ranges from 0.03 percent to 4.09 percent. The report takes a new approach to estimating the tax payment rate – instead of surveying a limited number of respondents, analysts have resorted to a combination of official government data, search volume information and global cryptocurrency ownership statistics.

The fact that the share of taxpayers in the crypto industry is negligible speaks to the poor regulation of digital assets. Various countries still do not have reliable tools to control the income of crypto investors, and they are reluctant to disclose all information about themselves to the government. However, it is important to keep in mind that the market experienced a crash in 2022, so few crypto investors can boast of having income. Well, you don’t have to pay interest on losses.


It seems that the head of cryptocurrency exchange Binance is satisfied with the current situation. And it is logical, because the trading platform is the largest in the world and actively receives user commissions for transactions. So, in this case, competitors of this platform will be engaged in creation and development of decentralized alternatives for trading digital assets. And some of them are already succeeding in this.


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