In Q2 Binance faces a 70% downfall in spot trade volume
Regulatory pressure on the Binance exchange brought a bad situation for its usual Crypto business model.
Binance is a global crypto exchange. The services of this exchange are available globally, either directly or via subsidiaries. The last three months were not good for this crypto firm. At the present time, Binance’s American subsidiary is under a legal heat & conflict in the US with two dominant financial regulators, namely the SEC & CFTC, over providing alleged unregistered securities & derivatives offerings.
Crypto analytic platform Kaiko reported that the recent regulatory pressure on this giant crypto exchange resulted in a very bad outcome for its business, as the customers are trying to avoid using this platform.
As per the report, spot trade volume on the Binance exchange for almost every trade pair plunged by 70% in the second quarter of this year.
Experts think that here regulatory pressure is not the only factor responsible for the downfall of the trade volume. According to experts, before Q2 2023 Binance was attracting huge numbers of Bitcoin & Ethereum traders on the exchange via trade-fee-free trading services but after the end of Q1 exchange terminated such fee-free trade rule from the platform.
Binance & its European banking partner
Around a week ago, Binance’s key European banking partner Paysafe Payment Solutions decided to terminate services for the Binance exchange, which will come into effect officially in September of this year.
It is still unconfirmed why Paysafe decided to break up with Binance but a Binance spokesperson reportedly said that it will not interrupt services for Binance customers & also soon the exchange will tie up with another banking partner.
BNB price action
Binance coin (BNB) is the native coin of the Binance exchange but the backend team behind this coin is fully independent. The current trade price of the BNB coin is $245 & this trade price is 19.8% down over the last 30 days of trade price.
Read also: Revolut decides to delist the top three rivals of Ethereum (ETH)
