Key Takeaways:
Binance Cloud offers a one-stop infrastructure solution for local exchange businesses.
Access to multiple liquidity pools and diverse exchange services.
Designed to meet diverse regulatory requirements for markets globally.
Advanced framework allowing rich customization.
Introduction
The crypto industry has been developing for the past 13 years, since Bitcoin’s first genesis block was created. In these years, we have witnessed numerous innovations and breakthroughs.
The industry has seen exponential growth in terms of blockchain infrastructure and applications, and exchange platforms continued to be a crucial part of it. Crypto projects, communities, developers and all related stakeholders utilize these exchanges for the final step of value realization. However, launching an exchange can be challenging due to complex technical barriers and compliance issues.
To help address these issues, we developed Binance Cloud, a comprehensive exchange infrastructure solution to enable qualified entities to deploy and launch a crypto exchange easily. It utilizes Binance’s industry-leading technology and makes room for added flexibility. Binance Cloud deploys first-class liquidity provision, robust regulatory compliance capacity, and battle-tested system stability and reliability from Binance.com, with room for customization. It provides flexibility and deliverability through a B2B2C model that can help our business partners run their business conveniently and efficiently.
In the past two years, Binance Cloud has attracted clients from all over the world. Thanks to our engineers and product managers, it’s constantly evolving on both the business and technical side. Binance Cloud provides more innovative and appealing features to meet the market demands, as well as specific business and customer needs.
Architecture
To get access to a Binance Cloud-powered exchange, the local user can create an account in that exchange via a web browser or iPhone/Android app. Next, the user will be asked to verify their account (i.e., pass a KYC/KYB process that meets local regulatory requirements). Once the registration is completed, customers can deposit crypto assets from their personal crypto wallets or fiat assets through different channels (if fiat is allowed by local regulations). Afterward, the user will be able to enjoy the exchange services and access the liquidity pools provided by Binance Cloud.
Effective Compliance Solutions
Operating an exchange requires rigorous compliance processes to meet regulatory obligations. Many countries across the globe are beginning to roll out regulatory frameworks to cover Web3 services and related crypto assets. Binance Cloud offers the industry’s most advanced and customized compliance solutions, including KYC, KYB, and AML. It renders the whole system architecture more flexible and makes it easier for businesses and customers to comply with local regulatory requirements. For on-chain and off-chain screening, Binance Cloud integrates multiple industry-leading tools to perform transaction monitoring and risk rating. Binance Cloud partners simply need to work with local regulators to understand the requirements they must meet, and then they can customize their platform as needed.
Product architecture of KYC
Binance Cloud has integrated with many global and local OCR providers to verify users’ ID documents. We have partnered with many client screening tools to check users’ risk ratings and provide tailored KYC/KYB flows for our partners via KYC/KYB Transformer Engine (KTE). By using KTE, we are able to deploy tailored KYC/KYB processes within weeks to launch our partners’ businesses. Moreover, we provide a risk engine to identify customers’ fraud risk. This next-generation fraud detection tool can analyze users’ behavior, device info, and historical behaviors consistent with local regulations.
As crypto continues to garner more and more popularity, the volume of hacks and asset loss incidents has risen. Monitoring and validating on-chain and off-chain transactions is our topmost priority. Our risk evaluation system benefits from the Binance machine learning-powered risk control system, as well as several sophisticated third-party vendors' solutions, which provide the local compliance team with the ability to screen transactions and detect potential issues. We strive to keep a balance between risk mitigation and user experience whilst complying with local regulatory standards.
Liquidity Pools and Exchange Services
As a one-stop-solution provider, Binance Cloud offers our partners a list of comprehensive exchange services, as well as flexibility to assemble diverse services to cater to their business demands. Our exchange services include:
Order matching
Binance Cloud provides our own matching engine and isolated liquidity pool, which is flexible enough to list any trading pairs our partners need.
A Binance Cloud-powered site can also share liquidity with binance.com for the popular trading pairs in the regions where sharing liquidity is allowed by the local regulators.
We can even offer customization on the order matching services. For example, in some regions we provide a broker-dealer model where users can not only take advantage of deep order books but are also able to execute against a local broker-dealer entity.
Both Spot and Perpetual Futures trading can be supported by Binance Cloud order matching exchange services.
Convert services
Catering to the demand for a simple trading process, in some regions Binance Cloud offers the Convert trading service, also known as One Click Buy Sell, where we simply provide a buy and sell quote for clients to trade at. Behind the scenes, we utilize our powerful quantitative service to aggregate the prices from multiple liquidity providers, offering the best ask and bid price to clients.
Fiat deposit and withdrawal services
To bridge the gap between fiat and crypto, Binance Cloud can integrate local banks or third-party fiat channels to perform deposits and withdrawals, and support legal compliance in line with the local regulatory requirements.
More Flexibility With a Custom CMS
Binance Cloud provides a series of tools to improve user experience. A content management system (CMS) helps customize the exchange's copywriting, pictures, translations, themes, page layouts, etc. Customers can use the tools provided within the CMS to easily post announcements as well to set up different themes for the site.
If our customers need more control of the page layout, they can use the page builder. Customers can choose components from a library and build web pages by drag-and-drop. Along with the page builder, an online code editor is provided to help the exchange operator customize business logic. Customers can also use page-builder to post activities, make promotion pages, set Easter eggs, and much more.
If there is a need for an even higher degree of customization, we provide an open API and a Micro-Front-End (MFE) system to help the customer's team deploy self-developed features to the exchange. With this feature, the customer's team can develop bespoke features in any programming language, including JS, PHP, Python, and Java.
Upcoming features
As the blockchain and Web3 industry keeps growing, Binance Cloud will explore further into those areas to bring our clients to the new era. Our new products may include staking features on POS tokens for clients to get considerable rewards; NFT marketplace for users to list and trade NFTs; price and data oracles for customers to fetch valuable information from off-chain on chain, and much more. In sum, we will work hard to address the market demands and enable our users to unleash their maximum potential through crypto, and implement powerful yet easy-to-use features for our customers.
