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

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

Binance's Bitcoin trading volume decreased 48% in this month, following the exchange's reintroduction of fees for its most liquid BTC trading pairs.

The exchange's users left the platform in April after it canceled trading incentives attached to its Binance USD due to the regulatory challenges surrounding the stablecoin. The trading volume fell by nearly 70% during the second quarter of last year.

This month, the exchange voted to abolish the zero-trading fee incentives for its TrueUSD and BTC trading pair, resulting in the discontinuation of traders to other platforms.

While Binance's volume has decreased due to the removal of the free trading incentives, the exchange has experienced increased regulatory concerns in various jurisdictions, including the United States and Europe, which has negatively impacted its market share.

In the United States, financial regulators, such as the Securities and Exchange Commission and the Commodity Futures Trading Commission, have brought legal action against it due to its failure to comply 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 had to voluntarily withdraw its license applications from some countries, such as Germany, while it has been outrightly denied in some places.

The stock exchange has been faced with 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 said the firm will win this time as well.