Binance market share takes regulatory hit, its US affiliate shrinks
Reuters
Published Jul 05, 2023 11:23AM ET
Updated Jul 05, 2023 04:26PM ET
By Medha Singh
(Reuters) - The market share of Binance, the world's largest cryptocurrency exchange, and its U.S. affiliate have shrank this year, as they battle an onslaught of regulatory crackdowns.
Last month, Binance was hit by a lawsuit by the U.S. Securities and Exchange Commission for allegedly breaching the regulator's rules, pushing its global market share to 52% from 60% at the start of the year, according to data firm Kaiko.
Binance had begun to cede market share in March after its move to end zero-fees transactions for some trading pairs, said Dessislava Aubert, an analyst at Kaiko.
"Binance's market share has gone to a variety of exchanges with Bybit and OKX faring best," Aubert said.
Binance.US, the purportedly independent partner of Binance, has seen its U.S. market share slump to 0.9% on June 26 from over 22% in April after the exchange gave its customers a deadline of June 13 to withdraw their dollar funds as the SEC asked a court to freeze its assets.
Bucking the trend, Coinbase (NASDAQ:COIN)'s U.S. market share jumped in June to 55% from 48.4%, as the exchange was named as a surveillance partner by Fidelity and other asset managers in filing for a spot bitcoin ETF, Aubert said.
Crypto companies dispute that crypto tokens are securities and have repeatedly called for the SEC to create clear rules.
Overall spot trade volumes slumped in the second quarter to its lowest level since 2020, Kaiko said, even as bitcoin rallied towards the end of the quarter to clinch a one-year peak of $31,458 as a spate of proposals from major asset managers including BlackRock (NYSE:BLK) lifted sentiment.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.