Binance, one of the world’s largest cryptocurrency exchanges, has seen a sharp drop in bitcoin trading volume amid increasing scrutiny from the U.S Securities and Exchange Commission (SEC). According to Coinlib, a cryptocurrency data aggregator, Binance’s 24-hour bitcoin trading volume has fallen by 42.8% in the last month, from a high of $35 million to $20 million.
The drop is a direct result of the SEC’s increased scrutiny of the cryptocurrency exchanges. The exchange was recently subpoenaed by the SEC to request information on its U.S.-based customers. The exchange also recently suspended trading of some cryptocurrencies that were deemed to be securities in the eyes of the SEC.
The SEC is working to ensure that digital currencies are being traded on regulated exchanges, and not used for money laundering or other illegal activities. Binance’s drop in trading volume is likely due to its customers opting to take their business to other exchanges that have been given the green-light by the regulators.
It remains to be seen how the ongoing scrutiny from the SEC will affect Binance’s ability to attract and retain customers. However, if the exchange can successfully navigate the regulatory landscape, it stands to regain its prominent position in the crypto market.