Binance Daily Volume Drops 60% Amid $4 Billion DOJ Fine Talks


Binance, a major crypto exchange, is experiencing a substantial drop in daily trading volumes, falling below $10 billion in recent weeks. This reflects a 60% decrease compared to last year’s averages ranging from $20-30 billion.

Join CryptosHeadline's Official Telegram Community Channel

Binance Confronts $4B Penalty Amid Regulatory Scrutiny

Binance, a leading cryptocurrency exchange, is experiencing a notable drop in daily trading volumes, dipping below $10 billion, marking a 60% decline from the averages observed last year. This decrease aligns with heightened regulatory scrutiny and a substantial $4 billion penalty imposed by the U.S. Department of Justice (DOJ) to settle allegations of federal security law violations.

The discontinuation of Binance’s zero-fee transaction model earlier this year, which played a pivotal role in 2022 volumes, has not prevented a contraction in trading activity.

While formal charges from the DOJ were not filed as of Nov. 20, the looming $4 billion fine, associated with a potential deferred prosecution agreement, presents significant challenges for Binance amid regulatory changes and diminishing trading volumes.

Binance’s Legal Woes and Volume Decline

The substantial drop in trading volume signals a shift away from Binance and the BNB Chain, likely driven by legal uncertainties. Rival exchanges, prioritizing regulatory compliance in major jurisdictions, stand to gain Binance’s market share, according to Kaiko’s data.

In addition to the $4 billion fine, Binance’s CEO, Changpeng Zhao, may face criminal charges, further complicating the situation. In June 2023, the SEC filed a lawsuit against Binance and Zhao, citing 13 charges, including the sale of unregistered securities.

Subsequently, the SEC requested a freeze on Binance.US’s digital assets, resulting in restrictions on USD deposits and a subsequent rush of sales.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

Join Cryptos Headlines Community

Follow Cryptos Headlines on Google News



    A crypto enthusiast, Loves to write, Loves to explore and stay up-to-date about the latest developments in the crypto world. #Btc #Crypto #NFT

Leave a Reply

Your email address will not be published. Required fields are marked *