Binance.US, the American branch of the global cryptocurrency exchange, is facing a significant drop in trading volume due to intensifying conflicts with US regulatory bodies. As per data from independent research firm CCData, the monthly trading volume of Binance.US has decreased by 98% from January to August 2022, with further reductions expected for September.
In the first half of September, the exchange registered a trading volume of merely $115.7 million, a sharp decline compared to $286 million in August. The bulk of this reduction happened after March, when Changpeng Zhao, the founder of Binance, was charged with violations by the US Commodity Futures Trading Commission.
The legal issues for Binance.US and Zhao escalated in June when both were sued by the US Securities And Exchange Commission (SEC) for multiple violations. These included misrepresentation of trading controls and oversight on the Binance.US platform. The company is currently defending these charges in court.
The SEC's allegations have had a profound impact on Binance.US's operations. Following the SEC complaint in June, the exchange lost its banking support and suspended US dollar deposits. It also initiated a series of layoffs, culminating last week with the departure of CEO Brian Shroder and the dismissal of a third of the remaining staff.
As of Monday, Binance.US recorded a daily trading volume of approximately $10.5 million according to data from CoinGecko. This is in stark contrast to Coinbase (NASDAQ:COIN) Global Inc., the largest US-based cryptocurrency exchange, which reported a daily trading volume of $948 million.
Binance.US, headquartered in Miami, has yet to comment on these developments.
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