The recent crackdown by the US Securities and Exchange Commission (SEC) on major crypto exchanges Binance and Coinbase has led to an unexpected consequence: a significant uptick in new account registrations with Bitget, a crypto derivatives exchange popular in Latin America. This shift highlights the adaptability of the crypto market and the desire of traders to find alternatives in the face of increased regulatory scrutiny.
The SEC’s actions began with a series of lawsuits against Binance and Coinbase with 13 charges against Binance and similar charges against Coinbase. Allegations included operating as an unregistered exchange and offering unregistered securities to customers. This came as a major blow to both exchanges and to individuals holding cryptos within them.
In response, Latin American crypto holders have been rapidly shifting their funds to exchanges like Bitget. Between June 6 and 9, new users from the region increased by 43% compared to daily averages. Brazil and Argentina, with the largest populations on the continent, saw the most substantial growth.
Bitget’s figures reveal that the platform’s Brazilian user base expanded by 54% and total deposits skyrocketed by 208%. Similarly, Argentina saw a 33% increase in users and an 87% increase in deposited funds. Overall, Bitget experienced a 134% surge in total deposits from the region.
According to Gracy Chen, the managing director of Bitget, these events highlight the rapid growth of the crypto industry. In her view, the industry will eventually find stability in strong economic systems like Hong Kong, Dubai, and Singapore, where favorable policies encourage growth. Despite initial setbacks, she believes the industry will consolidate and emerge stronger in the coming years.
The SEC crackdown, however, had far-reaching impacts beyond the immediate surge in Bitget users. Binance’s CEO, Changpeng Zhao, saw his net worth plunge by $1.4 billion, while Coinbase CEO Brian Armstrong’s net worth fell by $361 million.
Nonetheless, Bitget has continued to grow since its founding in 2018. The exchange now boasts a user base of around 8 million with a daily trading volume of approximately USDT 10 billion. In an effort to further expand its footprint in Latin America, Bitget signed a deal in October 2022 with Argentinian soccer star Lionel Messi, who serves as the brand’s ambassador.
In conclusion, the SEC’s aggressive action against Binance and Coinbase has prompted a significant shift in the crypto landscape, particularly among Latin American traders. The subsequent rise of Bitget demonstrates the adaptability of the market in the face of regulatory challenges and the potential for future growth in more supportive economic environments.
Source: Cryptonews
