Binance Could Be In Trouble Amid Recent Actions: Bloomberg

The world’s largest crypto exchange Binance continuously losing its dominance in the crypto market, according to a Bloomberg report. The decline in Binance’s market share in spot trading helped crypto exchanges such as OKX, Huobi, and Bybit gain market share in the last few weeks.

The heightened scrutiny and regulatory action by US regulators against Binance has become a big concern for its users. A potential enforcement action by the US Securities and Exchange Commission (SEC) could be devastating for the exchange and the market.

Also Read: US SEC Is Reportedly Close To Taking Enforcement Action Against Binance

Binance Losing Market Cap Constantly

US regulators have taken strict regulatory actions against major crypto exchanges Coinbase, Bittrex, and entities related to crypto. Binance was not spared, US SEC and NYDFS took action against Paxos ordering the firm to stop minting Binance USD (BUSD) stablecoin.

As a result, Binance ended its zero-fee Bitcoin trading program and BUSD zero-maker fee promotion. The exchange decided to switch from BUSD to low-market cap TrueUSD (TUSD) stablecoin. Binance CEO “CZ” confirmed the reason behind their recent change, making BTC/TUSD as the only zero-fee spot trading pair from March 22.

Important update. Given recent events, we are moving 0 fee BTC trading from BUSD to TUSD.

Let’s spread the liquidity to more pairs.
https://t.co/6SwqjZYSFZ

— CZ 🔶 Binance (@cz_binance) March 15, 2023

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According to Kaiko, Binance’s spot-trading volumes share fell to 51% in May from 73% in March. Crypto exchanges Market share of Huobi jumped from 2% to 10% and OKX from 5% to 9%. South Korean exchanges market shares increased to 14% from under 8%.

Cici Lu, founder of Venn Link Partners, said the intense regulatory heat in the US will continue to target Binance and its CEO “CZ.”

“The US crackdown has led to users worrying about the safety of their funds and that’s the reason they are diversifying into other centralized exchanges.”

Binance spokesperson asserts the market share drop is in contrast lower than projected by 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.”

Binance CEO is planning to reduce his shareholding in the Binance.US crypto exchange to reduce the impact on its US arm amid a targeted attack against Binance.

Also Read: Crypto Market In Free Fall As Bitcoin Price Breaks 200-WMA

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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