© Reuters Binance may be in trouble amid the latest proceedings
According to a Bloomberg report, Binance, the world’s largest cryptocurrency exchange, is losing . Its dominance in the market continues. The decline in Binance’s market share in spot trading has helped crypto exchanges such as OKX, Huobi, and Bybit gain market share in the past few weeks.
Scrutiny and tight regulatory action by US regulators against Binance has become a major concern for its users. A potential enforcement action by the US Securities and Exchange Commission (SEC) could be devastating to the trading platform and the market.
Coinbase (NASDAQ:) and Binance are seeing lower liquidity compared to previous quarters. Jump Crypto and Jane Street pulling back from their market making business from the US will put more pressure on the trading platforms.
Binance Consistently Loses Its Market Capitalization US regulators have cracked down on major cryptocurrency exchanges Coinbase and Bittrex and crypto-related entities. Binance is not saved. The US SEC and NYDFS took action against Paxos and ordered the company to stop minting the Binance USD (BUSD) stablecoin.
As a result, Binance ended its zero-fee Bitcoin trading program and zero-fee promotion for BUSD. The trading platform decided to switch from BUSD to the TrueUSD () stablecoin with a lower market cap. Binance CEO “CZ” confirmed the reason behind the latest change. This made BTC/TUSD the only spot trading pair without a fee as of March 22nd.
According to Kaiko, Binance spot volumes fell to 51% in May from 73% in March. Huobi’s market share jumped from 2% to 10% and OKX from 5% to 9%. South Korean exchange market shares rose to 14% from less than 8%.-
said Cici Lu, founder of Venn Link Partners. The intense regulatory heat in the US will continue to target Binance and its CEO “CZ”.-
“The tough US crackdown has users worried about the safety of their funds which is why they diversify into other centralized trading platforms.”
A Binance spokesperson confirms that the market share decline is less than expected in their modeling study. Binance will continue to improve existing products and services and invest in compliance processes to prepare for “a new era of regulatory certainty.”
The Binance CEO plans to reduce his stake in cryptocurrency exchange Binance.US to reduce the impact on its US arm amid a targeted attack on Binance.
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