It’s crystal clear that the crypto scene is always a beehive of activities. Recently, the giant in the game, Binance has witnessed an alarming decline in market share in non-dollar crypto exchanges. As per the data available from The Block, Binance’s market share, among exchanges that include Asian big shots like Upbit, Huobi, Bybit, and OKX, nosedived to a mere 54% in August and is envisaged to plummet further to less than 51% this September. This dip is quite significant given that the crypto powerhouse controlled a whopping 75% market share amongst these exchanges at the close of the last year.
It was only a few months back, in June, when the Financial Times reported that Binance’s slumped by 25% between February to June. The statistics showed that Binance handled 57.5% of the average monthly volume of all crypto trades in February. Nevertheless, this number had reduced to 43% by May’s end.
Binance’s co-founder, Yi He, has voiced her concern over the shrinking market share in a recent communique to the employees. She encouraged the workforce to concentrate on conceptualising splendid products and enhancing the user experience for all clients, eschewing attention to regulatory pressures or rivals’ expansions. She drew similar parallels with the crypto recession of 2019, reminding the team that Binance, even without its current product lineup, managed to emerge as a leader and seize control in the field.
On the other hand, Binance battles increasing regulatory oversight worldwide following the previous year’s market turbulence. Accolades to ‘blatant disregard for federal securities laws’, the SEC hauled up Binance and its CEO slamming 13 charges, including management of an unregulated exchange. The charges flung upon Binance include offering unregistered securities to public entities, including its BNB token and BUSD stablecoin.
French authorities, too, have raised their eyebrows at Binance, probing allegations against the platform of illegal digital asset services and aggravated money laundering provision. Nigeria’s Securities and Exchange Commission (SEC) hasn’t lagged behind, ordering Binance to bring operations to a grinding halt there.
The very basis of cryptocurrency—decentralisation—could be the bone of contention here. While crypto enthusiasts may see regulatory scrutiny as overkill, such oversight is essential in guarding against misuse. As these events unfold, one thing is clear: the blockchain landscape is in for an interesting phase.
Source: Cryptonews
