Binance, one of the world’s leading and most popular cryptocurrency exchanges, is making significant progress toward launching its decentralized exchange (DEX). According to Changpeng Zhao, CEO of Binance, via Twitter, the Binance DEX will enter a public beta by the end of this year or the beginning of next year.
The beta will be accessible to all users. However, it will remain a near-complete test version, allowing users to report bugs or issues with the platform and even propose new features. Changpeng Zhao, also known as CZ, noted that Binance Coin (BNB) will serve as the native gas token on the platform and that users’ cryptocurrencies (that is, their private keys) will not be controlled by the company or any central authority on the new DEX.
Just had a productive meeting for #Binance #DEX (decentralized exchange), where $BNB will be native gas, and the exchange don’t control user funds. Aiming for a public beta end of the year/early next year. Yes, we work on Saturdays, non stop!
— CZ 🔶 BNB (@cz_binance) September 29, 2018
Earlier in August, Zhao showcased a brief demo—the “casual pre-alpha demo”—of the DEX, which at that stage was entirely command-line based. At the time, CZ explained that the centralized Binance platform and the new Binance DEX would coexist; the DEX is not intended to replace the existing exchange.
A first (rough, pre-alpha) demo of the Binance Decentralized Exchange (DEX), showing issuing, listing and trading of tokens. All cli based, no GUI yet. A small step for #BinanceChain, a big step for #binance. https://t.co/2aXkR0gclP
— CZ 🔶 BNB (@cz_binance) August 9, 2018
Contrary to expectations that the announcement would boost BNB’s market value, the price did not reflect a strong positive reaction. At the time of reporting, Binance Coin showed only a modest 0.59% increase over the past 24 hours, trading at approximately €8.51 (US$9.88).
Earlier this month, Binance came under scrutiny from New York authorities after a report from New York Attorney General Barbara Underwood named Binance, Kraken, and Gate.io in potential violations of local laws, raising concerns about possible illegal operations in New York. Each exchange had refused to provide information requested by the state.
In a recent interview, CZ addressed the situation by pointing to the unclear regulatory environment in the United States. He explained that, unlike exchanges such as Coinbase or Gemini, Binance does not focus primarily on the U.S. market because the global market presents greater opportunities for the company.