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Binance CEO confirms margin trading, stablecoin discussions, and possible Argentina launch in wake of security breach

Isabel Woodford
Binance, the world's largest cryptocurrency exchange by trading volume, is in talks to establish a local entity in South Korea, according to sources familiar with the matter.The post Binance is in talks to establish a local entity in South Korea appeared first on The Block.

It's been a hectic 24 hours for Binance. "A rough day," CEO Changpeng "CZ" Zhao admitted to viewers during his live ask-me-anything (AMA) session on YouTube early this morning, after a chat user pointed out he looked "exhausted" amid the chaos of a security breach. 

But despite his sleep deprivation, CZ offered AMA viewers updates on the hack alongside some other big news.

Here's the breakdown:

On the 7,000 BTC hack (1.00-7.00)

  • As noted in Binance's initial blog, the theft was the result of an "advanced, persistent hacking effort."
  • The $40 million worth of funds lost will be covered, so any affected users will be reimbursed *
  • He said the priority now is to rebuild the system and trace any residue left by the hackers
  • No deposits or withdrawals will be accepted until they are satisfied the system has been secured, which may take up to a week
  • He advised users to change their 2FA logins as a precaution
  • He said it was an "unfortunate incident but it is what it is," pledging transparency in the resolution process

On margin trading (15.15-16.00)

  • A margin trading system is rolling out "very soon," and is now in testing phase with large traders 
  • The platform will have a "gradual" roll-out
  • They are now ironing out any potential bugs

On a future stablecoin

  • He said there are "a few different proposals and plans" in motion around stablecoin listings following a series of internal discussions
  • It is "likely something may happen there"
  • But he added they could not commit to anything just yet

On The Launchpad timeline

  • CZ confirmed they had selected a shortlist of Launchpad candidates and were now choosing the final candidate, to be announced "hopefully" this month
  • It may be delayed by one week due to the hack
  • The project will continue on the same format as last time

On Binance Chain

  • He mentioned Binance Chain (their native blockchain) was unlikely to migrate to Proof of Stake soon, but added they had not thought much about governance or validator issues yet - they're focused on boosting adoption first
  • He also said projects seeking to get listed on Binance would have an "easy" time if they've already issued tokens on Binance Chain
  • Binance Chain would eventually be open-source, along with their DEX, once they have momentum 

Elsewhere...

  • CZ also confirmed Binance was working on Argentina being the next fiat roll-out, following the recent launch in Singapore
  • Binance is in discussions about a credit card partnership, but CZ said he was not directly involved
  • The exchange is not looking into acting as a banking business

* In the AMA, CZ discussed reorganizing the bitcoin network to recover the funds, but he has since dismissed this option, confirming Binance will replenish the funds from its own insurance fund.