Binance, the world’s largest cryptocurrency exchange, faced regulatory obstacles last year and experienced a decline in market share. However, recently, funds seem to be flowing back in. Since reaching an agreement with US regulators on November 21, Binance has seen a net inflow of funds amounting to $4.6 billion, surpassing its competitors.
In November last year, Binance reached a settlement agreement with the US Department of Justice, the Commodity Futures Trading Commission (CFTC), and other institutions. The exchange admitted guilt and agreed to pay a $4.3 billion fine. Binance founder Zhao Changpeng acknowledged charges of violating US anti-money laundering laws and stepped down as CEO.
Under regulatory pressure, Binance’s market share has been declining since February last year, with many users turning to other centralized exchanges. In December, Binance’s spot trading volume market share dropped to 38.45%, a significant decrease from 62.25% in February, evaporating nearly 38% of its market share.
However, funds appear to be flowing back into Binance. According to Defilllama data, since reaching an agreement with US regulators on November 21, Binance has seen a net inflow of $4.6 billion, far surpassing its competitors, including $2.6 billion for OKX and $1.1 billion for Bybit.
In January so far, Binance has attracted $3.5 billion in fund inflows, surpassing any monthly inflow since November 2022.
This influx of funds is good news for Richard Teng, who took over as CEO of Binance after Zhao Changpeng stepped down. Binance experienced a year of declining market share and fund outflow, but its spot market share has stabilized since December after nine consecutive months of decline.
Since November 21, the price of Binance’s platform coin, BNB, has risen by nearly 40%, outperforming Bitcoin’s 15% increase during the same period.
To a large extent, Binance has benefited from the recovery of the cryptocurrency market. Despite facing many challenges, traders are still transferring funds to Binance. Currently, according to the settlement agreement, Binance must establish a global headquarters, appoint a board of directors, and appoint an independent supervisor for a three-year term.
However, despite the influx of funds, Binance still faces regulatory pressure from multiple countries. Binance does not have official licenses in major cryptocurrency centers such as Singapore, Dubai, and Hong Kong. It is also currently facing a lawsuit from the US Securities and Exchange Commission (SEC).
Last year, Binance faced setbacks in Australia, Belgium, and other countries due to operating without licenses. Recently, Binance encountered another setback in India. After Indian authorities accused Binance and other overseas exchanges of illegal operations, the apps of Binance and nine other major cryptocurrency exchanges were removed from India’s Apple App Store.
Related Reports:
– Binance Thailand “Binance TH” officially starts trading, supports Thai baht deposits and withdrawals.
– SEC continues to pursue CZ in the Binance lawsuit, settlement with the US Department of Justice is not the end.
– Obstacles in the bull market cleared! Court approves settlement agreement for Binance and Zhao Changpeng, requiring payment of a $2.7 billion fine to the CFTC, are there hidden terms?