Cryptocurrency Exchange Binance is Losing the European Market
Binance, the largest cryptocurrency exchange in the world, has been losing its European market share. This has been attributed to both the downturn in the cryptocurrency market and increasing regulatory scrutiny, according to The Wall Street Journal.
According to research firm Kaiko, Binance's share of the overall cryptocurrency trading volume in the euro pair has dropped to 15%, compared to over 30% in January. Currently, the highest number of Binance users are registering from Vietnam, Turkey, India, and Argentina, as reported by SimilarWeb, an analytics company.
Researchers believe that the stricter stance of European authorities may limit Binance's opportunities, forcing the company to focus more on the markets in Asia, Africa, and South America, where it will need to allocate additional resources for expansion.
Countries such as the Netherlands and Belgium have already closed their doors to Binance, while Germany has yet to grant the exchange a license, although it may do so in the future. Recently, French authorities conducted searches in Binance offices as part of a money laundering investigation.
Previously, financial regulators in several EU jurisdictions received information requests about Binance from the US Securities and Exchange Commission (SEC). Additionally, several European countries are conducting their own investigations into Binance for suspected violations of local regulations.
The European Union authorities have raised concerns about the illegal activities of Binance's subsidiaries, particularly due to unknown operations conducted by the exchange in Ireland and Malta. As a result of the ongoing investigations, Binance is actively scaling back its presence in Europe.
Furthermore, Binance is facing accusations from the SEC regarding various securities law violations. On June 5, 2023, the SEC filed a lawsuit against Binance, Binance.US, and the founder of the exchange, Changpeng Zhao, accusing the company of operating unregistered exchanges and selling unregistered securities.
As a result of the lawsuit, Binance has encountered significant restrictions in the United States. Local payment services have started to refuse cooperation, and there has been a significant outflow of customer funds, leading to a substantial reduction in Binance's market share in the US.