Binance's Bitcoin trading volume falls 48% amid regulatory challenges

Binance's Bitcoin trading volume falls 48% amid regulatory challenges

Binance's Bitcoin trading volume fell 48% in this month, down 48% after the exchange reintroduced fees for its most liquid BTC trading pairs.

The exchange's users quit in April after it canceled trading incentives on its Binance USD because of the regulatory issues surrounding the stablecoin. The exchange's trading volume fell nearly 70% during the second quarter of the year.

The exchange's decision to end the zero-trading fee incentives for its TrueUSD and BTC trading pairs resulted in the migration of traders to other platforms this month.

Although Binance's trading volume has been reduced due to the removal of free trading incentives, the exchange has faced up to higher regulatory problems in various jurisdictions, including the U.S. and Europe, which has negatively impacted its market share.

In the United States, financial regulators, including the Securities and Exchange Commission and the Commodity Futures Trading Commission, have brought legal action against it because of its lack of compliance with local laws. Additionally, there are reports that the exchange and its CEO, Changpeng Zhao, are under investigation by the U.S. Department of Justice.

On the other side of the Atlantic, the platform has been voluntarily withdrawing its license applications from certain countries, such as Germany, while it has been outrightly denied in certain regions.

The exchange has faced up to the recent exits of several top executives, including Binance U.S. CEO Brian Shroder, General Counsel Han Ng, Chief Strategist Patrick Hillmann, and SVP for Compliance Steven Christie.

Binance co-founder He Yi has vowed to downplay all these incidences, saying the exchange faced even more challenging situations in 2019 but emerged out of them stronger. She added that the firm will win again this time as well.