Bitcoin (BTC) trading volumes on Binance have plummeted this month as lawsuits and regulatory scrutiny mount on the world’s largest crypto exchange.
According to K33 Research, Binance’s 7-day average spot BTC volume is down 57% since the start of September compared to roughly flat readings on a number of other exchanges. Volumes of American competitor Coinbase increased by 9% over this period.
This dramatic decline comes as Binance is in the crosshairs of regulators around the world following a series of lawsuits, license denials and voluntary takedowns. US Department of Justice (DOJ) prosecutors are reportedly evaluating charges against the company, while the Securities and Exchange Commission (SEC) sued Binance, the exchange’s US entity, three months ago Binance.US and founder Changpeng “CZ” Zhao, alleging multiple federal securities laws.
“The ongoing cases between the DOJ and SEC against Binance may have dissuaded market makers from trading on Binance, partly explaining the decline,” said Vetle Lunde, principal analyst at K33 Research. “Some market-making activities have likely been disclosed on other exchanges, but it is still almost certain that Binance’s woes are having a negative impact on market volumes,” he added.
Binance.US has also suffered from an exodus of trading activity. Data from crypto analytics firm Kaiko shows that the overall weekly trading volume on this platform fell to $40 million from nearly $5 billion earlier this year, a decrease of around 99%. %.
