Binance‘s dominance fell to 44% last year amid growing regulatory and legal issues
binance
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According to data from Paris-based crypto intelligence platform Kaiko, crypto exchange Binance’s market share dropped significantly last year, falling to 44.5%.
This decline follows a three-year upward trend in which Binance’s market share increased from 22% in 2020 to 60% in 2022. However, subsequent regulatory hurdles in various jurisdictions contributed to a decline in market share last year.
Binance Market Share (Source: Kaiko)
Binance regulatory issues
Binance withdrew from Canada, the United Kingdom, and several European countries, including Austria, Cyprus, the Netherlands, and others, due to non-compliance issues in 2023.
However, the main catalyst for the decline in market share stems from regulatory issues faced in the US by federal agencies such as the Commodity Futures Trading Commission (CFTC), the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), and the Financial Crimes Enforcement Network (FinCEN). The Office of Foreign Assets Control (OFAC) took legal action against it.
Binance, the world’s largest crypto exchange, prioritized growth and profits over compliance with U.S. laws and charged accordingly, the Department of Justice said.
The regulatory actions resulted in the resignation of its CEO and co-founder Changpeng Zhao and a record $4.3 billion settlement with authorities. Zhao is currently in the United States awaiting sentencing for his role in the crypto trading platform.
Despite this development, the US Securities and Exchange Commission (SEC) remains a formidable challenge for Binance, with ongoing accusations against the exchange and its US subsidiary. The regulator alleges that the firm was involved in the listing of unregistered securities, pooling of assets and market manipulation.
Additionally, the SEC classified Binance-related cryptocurrencies, such as BNB and BUSD stablecoin, as securities.
Despite a decline in market share and regulatory battles, Binance attracted 40 million new users in 2023, increasing its worldwide user base to 170 million. The company also said it spent over $200 million last year to support compliance efforts.
#Binances #dominance #fell #year #growing #regulatory #legal #issues
binance
-.jpg” />
According to data from Paris-based crypto intelligence platform Kaiko, crypto exchange Binance’s market share dropped significantly last year, falling to 44.5%.
This decline follows a three-year upward trend in which Binance’s market share increased from 22% in 2020 to 60% in 2022. However, subsequent regulatory hurdles in various jurisdictions contributed to a decline in market share last year.
Binance Market Share (Source: Kaiko)
Binance regulatory issues
Binance withdrew from Canada, the United Kingdom, and several European countries, including Austria, Cyprus, the Netherlands, and others, due to non-compliance issues in 2023.
However, the main catalyst for the decline in market share stems from regulatory issues faced in the US by federal agencies such as the Commodity Futures Trading Commission (CFTC), the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), and the Financial Crimes Enforcement Network (FinCEN). The Office of Foreign Assets Control (OFAC) took legal action against it.
Binance, the world’s largest crypto exchange, prioritized growth and profits over compliance with U.S. laws and charged accordingly, the Department of Justice said.
The regulatory actions resulted in the resignation of its CEO and co-founder Changpeng Zhao and a record $4.3 billion settlement with authorities. Zhao is currently in the United States awaiting sentencing for his role in the crypto trading platform.
Despite this development, the US Securities and Exchange Commission (SEC) remains a formidable challenge for Binance, with ongoing accusations against the exchange and its US subsidiary. The regulator alleges that the firm was involved in the listing of unregistered securities, pooling of assets and market manipulation.
Additionally, the SEC classified Binance-related cryptocurrencies, such as BNB and BUSD stablecoin, as securities.
Despite a decline in market share and regulatory battles, Binance attracted 40 million new users in 2023, increasing its worldwide user base to 170 million. The company also said it spent over $200 million last year to support compliance efforts.
#Binances #dominance #fell #year #growing #regulatory #legal #issues