Binance increases volumes despite regulatory crackdown
Between July and September, trading volumes on one of the largest cryptocurrency exchanges, Binance, increased sharply. This suggests that the crackdown by regulators in various countries has had little or no impact on the platform’s operations.
Growth in volumes
Concerned about consumer protection as well as trying to prevent money laundering operations, regulators in Germany, Japan, China, and the UK have increased pressure on Binance in recent months. Some countries have imposed bans on certain activities, while others have sent out a warning to users that the exchange is not licensed to operate in their jurisdictions. In response, Binance has cut its product line and tightened controls on suspicious transactions.
According to Independent.ie, despite regulatory actions, the volume of spot cryptocurrency trading on Binance increased sharply. From $454 billion (~£334 billion) in July, it rose to $789 billion (~£581 billion) in September. Derivatives volumes also jumped almost 25%. Thus, Binance confirmed and strengthened its status as the world’s largest digital asset platform. However, a spokesperson for the exchange declined to comment on the matter.
In part, this increase is attributed to a rise in cryptocurrency prices. Between July and August, the price of Bitcoin (BTC) surged by more than a third and remained at this level in September.
Actions by Singapore’s regulators
Last month, Singapore’s regulator was one of the latest to join the crackdown on Binance. It issued a warning that the exchange’s actions could violate local laws, so it asked it to stop providing services to residents of the city-state. In response, Binance banned users from Singapore from trading on the platform. By doing so, the exchange minimised the range of crypto products that could be monitored by regulators.
In July, Binance stopped offering derivatives in Europe and restricted derivatives trading in Hong Kong. In addition, the exchange withdrew digital tokens linked to shares from its offerings.
We will be following the actions of Binance, which has so far managed to cope with regulatory persecution across the globe. The platform has once again proved that it can operate and grow while complying with all legal requirements.
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