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The US market share of Binance declines amid a legal spat with the SEC

With the American securities regulator continuing to tighten down, the market share of Binance’s U.S. affiliate has decreased. The Securities and Exchange Commission (SEC), which is suing top U.S. cryptocurrency exchange Coinbase, is reportedly suffering losses as well.

Kaiko claims that Binance’s US market share has decreased to 1.5%

Binance US, the American division of the largest cryptocurrency exchange in the world, is suffering as a result of the legal battle with the SEC. According to digital asset market data source Kaiko, the platform now only accounts for 1.5% of the weekly trading activity on American exchanges.

According to the study, that has decreased from 8.2% at the start of 2023. According to a report by Bloomberg, the huge fall occurs at a challenging time for Binance’s U.S. affiliate, which is grappling with users withdrawing assets and payment partners shutting off assistance.

The most recent issues started when the securities regulator filed a lawsuit against Changpeng Zhao (CZ), the founder of Binance, and BAM Trading Services and BAM Management US Holdings, who operate the American exchange. The lawsuit claims that the defendants violated U.S. securities laws by deceiving investors and mismanaging user funds.

Binance US was able to avoid an asset freeze that would have destroyed its company thanks to an agreement with the SEC that mandates Binance to repatriate any cash from U.S. customers. But according to Clara Medalie, head of research at Kaiko, “What we are seeing here is sort of the collapse of Binance US.” She added details.

In a post-SEC world, can Binance US survive? Although the stats suggest it’s highly doubtful, I still believe the verdict is out on that.

In the meantime, Coinbase’s market share has decreased as well, falling from 56.5% at the beginning of the year to 51% in late June. The SEC also launched a complaint against the biggest cryptocurrency exchange in the US, claiming that the San Francisco-based business had violated securities regulations.

In addition to Kraken, Bitstamp, and Lmax, Kaiko said that other cryptocurrency exchanges’ market shares are growing in the US. From 41% at the start of this year to 53% this month, U.S.-based Kraken has increased its market share in Europe. Over half of the market share in cryptocurrency trades denominated in euros was lost by Binance’s worldwide platform in 2023.

Due to its inability to get a Dutch license to operate as a crypto service provider, Binance stated last week that it is abandoning the Dutch market. In the past, Binance’s business in Britain revoked its U.K. regulatory permission, and its corporation in Cyprus requested to be removed from the nation’s list of digital asset service providers.

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