Binance, the world’s largest cryptocurrency exchange, has been embroiled in a dispute with the Securities and Exchange Commission (SEC) for several weeks. Recently, the SEC initiated a lawsuit against the world’s biggest exchange, causing concerns across various aspects of the exchange’s operations. Consequently, Binance’s spot trading volume has experienced a significant decline.
Additionally, the SEC filed a request for a temporary restraining order against Binance.US. However, this specific request was dismissed by Judge Jackson as part of the legal proceedings. It is noteworthy that Binance has also taken steps such as submitting an application for deregistration as a crypto service provider in Cyprus and withdrawing its license application in Austria.
During the ongoing legal dispute, insiders familiar with the situation have revealed that 50 employees were let go. These anonymous sources disclosed that the affected staff members belonged to Binance.US’ legal, risk, and compliance department.
In an effort to address the imposed restrictions on the exchange, CZ’s platform and the SEC were directed to participate in a mediation meeting held yesterday. The lawsuit brought by the SEC against Binance has also contributed to spreading fear, uncertainty, and doubt (FUD), consequently leading to a decline in market prices. Additionally, the SEC has filed a lawsuit against Coinbase, the largest cryptocurrency player in the United States.
According to the most recent analysis, CZ’s exchange has experienced a decline in spot trading volume during the second quarter of 2023, amidst the ongoing lawsuit.
Lowest Spot Trading Volume in Years for Binance
A recent research report from Kaiko reveals that the leading cryptocurrency exchange has experienced a significant decline of 70% in its combined spot trading volume. The data indicates that the volume has reached its lowest point, which has not been observed since the fourth quarter of 2020.
It’s important to note that Binance is not the only exchange affected by this situation. The report highlights that Coinbase, Kraken, and OKX have also suffered a drop of over 50% in their spot trading volume. One of the main factors contributing to this decline could be the regulatory uncertainty prevailing in the United States.