Binance, founded in 2017 by Changpeng Zhao, quickly established itself as the largest
cryptocurrency exchange in the world, standing out for its transaction volume and the
diversity of assets offered. However, its impact on the crypto ecosystem goes beyond the
simple operation of an exchange platform. The company has adopted an aggressive
expansion strategy, acquiring and developing various companies and services that make up
the cryptocurrency market infrastructure. These strategic acquisitions not only expand its
global presence but also strengthen its control over different aspects of the sector, from
market data to wallet solutions and local financial services.
Expansion through strategic acquisitions
Binance has adopted an aggressive expansion strategy by acquiring key companies to
strengthen its ecosystem and broaden its reach in the global cryptocurrency market. These
acquisitions not only increase its presence in different regions but also allow more
comprehensive control over various aspects of the sector.
CoinMarketCap (2020)
In 2020, Binance acquired CoinMarketCap, the most accessed cryptocurrency data platform
worldwide, for approximately US$400 million. Founded in 2013, CoinMarketCap provides
crucial information such as prices, trading volumes, and market capitalization of thousands
of cryptocurrencies. This acquisition allowed Binance to integrate real-time market data into
its platform, offering a more complete experience for users. Despite the acquisition,
CoinMarketCap continues to operate independently, maintaining its mission to provide
transparent and accurate data for the crypto community.
Trust Wallet (2018)
In 2018, Binance acquired Trust Wallet, a decentralized and open-source mobile wallet
compatible with Ethereum and over 20,000 ERC20, ERC223, and ERC721 tokens. Trust
Wallet stands out for its security and philosophy of never accessing users’ wallets, retaining
private keys, or requesting personal information. After the acquisition, Trust Wallet
maintained operational autonomy, allowing its team to continue developing the product while
benefiting from synergy with Binance. This acquisition strengthened Binance’s position in the
digital wallet market, offering users a secure and integrated solution to store their assets.
Entry into local markets and regional partnerships
Binance has adopted an international expansion strategy through the acquisition of local
Tokocrypto (Indonesia)
In 2022, Binance fully acquired Tokocrypto, one of Indonesia’s leading cryptocurrency
exchanges, after initially acquiring a stake in 2020. This acquisition allowed Binance to
operate directly in the Indonesian market, which has a young population and growing
cryptocurrency adoption. Tokocrypto obtained a full license from Indonesia’s Commodity
Futures Trading Regulatory Agency (Bappebti), consolidating its position as one of the main
crypto trading platforms in the country.
Sim;Paul Investimentos (Brazil)
In Brazil, Binance announced in 2022 its intention to acquire the brokerage firm Sim, Paul
Investimentos, specialized in traditional financial investments. This acquisition aimed to
facilitate Binance’s legal access to the Brazilian market, allowing the offering of regulated
financial products such as cryptocurrency derivatives. The transaction was subject to
approval by the Central Bank and the Brazilian Securities and Exchange Commission
(CVM).
Binance TH (Thailand)
Binance also formed a joint venture with Gulf Innova, a subsidiary of Thailand’s Gulf Energy
Development, to launch the Binance TH platform. This strategic partnership allowed Binance
to legally operate in Thailand, offering cryptocurrency trading services with local currency
pairs and integrating with local banks. Binance TH received a license from Thailand’s
Ministry of Finance in May 2023 and launched public operations in January 2024.
Strategies beyond acquisitions
Binance does not limit its expansion to acquiring established companies. The exchange
also heavily invests in internal asset development and strategic partnerships that broaden its
ecosystem and market control.
A clear example of this strategy is Binance.US, a platform aimed at the U.S. market. Unlike
other acquired or fully controlled operations, Binance.US operates as a separate and
independent entity. It is operated by Binance but not directly controlled due to strict American
cryptocurrency exchange regulations. This operation is managed by a local team, ensuring
regulatory compliance while maintaining alignment with the Binance brand.
Moreover, Binance creates products and platforms internally, such as Binance Smart Chain
(BSC), its own blockchain that offers a fast and low-cost alternative to Ethereum
ecosystem. This infrastructure, built by Binanc,e reinforces its dominance by providing
services that directly meet the crypto community’s needs, strengthening its position not just
as an exchange but as a multifaceted platform.
The combination of strategic acquisitions, local partnerships, and in-house development
allows Binance to own a broad, diversified, and highly integrated ecosystem, granting it
significant control over various aspects of the global crypto market.
Impact and significance of Binance’s dominance
impact on the global market. For users and investors, this concentration can offer
advantages such as greater convenience, security, and innovation by integrating trading,
custody, and data services into a single ecosystem. However, it also raises concerns related
to centralization, including systemic risks and vulnerabilities caused by corporate decisions
or regulatory pressures that could affect multiple services simultaneously.
From a competition standpoint, Binance’s dominance poses considerable challenges to
other exchanges and service providers, which must compete not only on technology and
pricing but also on global reach and integrated solutions. This position allows Binance to
influence market trends, regulatory standards, and consolidate its leadership, making it
harder for new competitors to enter and expand. Therefore, it is essential that investors,
regulators, and sector participants closely monitor this evolution, seeking a balance between
innovation, security, and healthy competition.
Binance’s consolidation as a multifaceted giant
Binance has consolidated itself as a central and multifaceted actor in the global crypto
operations. This broad control not only strengthens its competitive position but also shapes
The development of the cryptocurrency market, influencing everything from user experience
to international regulatory guidelines. As Binance expands its influence, the future of
Cryptocurrencies are likely to be marked by increasing technological and institutional
integration, which can bring significant advances, but also requires constant attention to
ensure balance, transparency, and security in a sector still in formation
