The biggest cryptocurrency exchange, Binance, launched a new feature, enabling seamless transfers between user accounts on December 2nd.
The new feature will apparently not use blockchains to record transactions, as the exchange explained the mechanism behind the new feature in an official blog post: "If a user withdraws assets from their Binance account to an existing Binance deposit address, this will be recognized as an internal transfer and will be processed without the need for any block confirmations and also have zero transfer fees."
While the new feature was greeted by a number of Binance's users due to the removal of the withdrawal fees in such a case, the new feature could paint some trouble for the no 1 exchange. Another prominent cryptocurrency exchange, Coinbase, well known for its strict adherence to regulation has banned such transfers as they are a potential AML regulation violation. It remains to be seen if Binance sticks to the new mechanism and will it provoke some sort of reaction from the regulatory bodies on Malta.