Binance, the world’s largest cryptocurrency exchange by trading volume, is in danger of losing its global hegemony. Binance has been tarnished by a recent regulatory crackdown by some of the world’s most powerful regulators.
The latest “onslaught” of regulatory action is placing pressure on Binance’s overwhelming worldwide supremacy, according to Kaiko, an institutional-grade crypto market data source. Multiple countries, including the United Kingdom, Thailand, the Cayman Islands, Canada, and even Singapore, have imposed limits on cryptocurrency trading.
As a result, numerous of Binance’s banking and payment partners have begun to terminate connections with the exchange. The most recent is from Barclays, a British bank that has prohibited its customers from transferring payments to Binance.
The thing about Binance is that its base has been shifting over the last several years. The lack of a global headquarters for the crypto exchange has been a major source of concern. Binance was founded in Asia, but after the 2017 crackdown, it relocated to the United States.
Binance is primarily reliant on the European and North American markets, as evidenced by the trading volumes of the BTC/USDT trading pairings.
Binance continues to lead the market in terms of hourly trading volume, as shown in the figure above. However, volume spikes at the overlap between EU and US trading hours appear to be closing some gaps for Huobi.
OKEx, on the other hand, competes mostly with Binance during Asian trading hours, making it more of a regional than global competition. Interestingly, despite the current crackdown, the Binance exchange’s BTC holdings have not decreased.
Customers from the United Kingdom are not permitted to transact with Binance, according to Barclays. Customers in the United Kingdom can no longer transfer payments to Binance using a debit or credit card, according to London-based British banking behemoth Barclays. The prohibition follows a two-week investigation by the UK’s top regulator, the Financial Conduct Authority (FCA). In response to a tweet from a consumer, Barclays said:
“It is our job to assist you in safeguarding your funds. With this in mind, we’ve decided to suspend credit/debit card payments to Binance until further notice in order to protect your funds.”
Payment gateways and financial institutions want to play it safe and avoid any regulatory wrangling.