Binance’s regulatory troubles in various jurisdictions in June appear to have resulted in a significant drop in users’ crypto assets.
Binance users withdraw assets.
Exchange updates proof of booking According to a snapshot taken on July 1, users’ bitcoin deposits fell by 3.5% to 592,450 BTC from the 614,800 BTC recorded on June 1. This means that platform users withdrew around 22,000 BTC from the platform during this period.
Glassnode data confirms that BTC exchanges on Binance have dropped significantly. According to the data aggregator, Binance’s BTC exchange balance fell from a peak of 709,001 BTC on June 4th to 651,275 BTC on June 23rd, after which the current balance on July 6th was 657,536. It rose to BTC.
Ethereum deposits of exchange users decreased by 4.4% from 4.35 million ETH held by users on June 1 to 4.16 million ETH as of July 1. This means that exchange users have withdrawn about 200,000 ETH from the platform in 30 days.
Meanwhile, Glassnode data shows that ETH balances on Binance have been trending downward since early May, coinciding with a time when total ETH holdings across all exchanges fell to their lowest level in five years.
Another major crypto asset that saw deposits decline over the past month is Tether’s USDT. Binance’s stablecoin balance fell by 1.61 billion to 15.47 billion, a decrease of 9.45%.
Meanwhile, Binance’s BNB balance bucked the declining trend in deposits, rising 6.6% to 29.7 million BNB as of July 1. Other assets that have recorded deposit growth include Ripple’s XRP, USD Coin (USDC) and others.
Binance Regulatory Issues
In June, Binance faced significant regulatory hurdles in several jurisdictions. The United States, European countries and Nigeria have stepped up surveillance of exchange activity.
The U.S. Securities and Exchange Commission (SEC) has accused Binance of violating federal securities laws in its operations, adding that the exchange was offering cryptocurrency tokens to Americans.
Binance has pledged to contest these allegations, but CEO Changpeng ‘CZ’ Zhao has characterized the lawsuit as more than just a corporate legal battle, stating that the broader cryptocurrency industry has been criticized. I see it as an attack.
The exchange has lost its euro clearing partners in Europe and pulled out of several regional markets, including Austria, the Netherlands, Cyprus and Germany. During these departures, French authorities raided exchange offices in France, and a suspension order was issued against exchange offices in Belgium.
Despite these issues, a Binance spokesperson said: crypto slate The company said its focus was on ensuring compliance with Europe’s upcoming Crypto Asset Market (MiCA) regulations.
