As A Result Of Regulatory Pressure And Fee Changes, Binance’s Market Share Decreases

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According to data from cryptocurrency market data provider Kaiko, Binance’s market share in spot trading has decreased by 17 percentage points from 90% to 73% since the start of the year.

The study claims that Binance’s market weaknesses are also being exploited by other offshore platforms. In the same month, Huobi and Bybit increased their respective market shares of the global spot crypto trading volume to 9% and 7%, respectively, while OKX’s market share nearly doubled from January to 11%.

According to the study, the new and stricter regulatory environment in the United States, including lawsuits brought against the company by the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), was a contributing factor in Binance’s market share decline.

On June 5, the SEC filed 13 accusations against Binance and its founder, Changpeng Zhao, claiming various securities law breaches. The SEC accusations include acting as unregistered exchanges, brokers, dealers, and clearing agencies; making unregistered offers and sales of crypto assets; failing to limit access to Binance.com for US investors; and deceiving investors.

Binance replied with a blog post in which it stated that it is “disappointed” with the SEC’s decision since Binance has cooperated with the regulator’s investigations, attempted to resolve its concerns, and sought a negotiated settlement.