Lawsuits cause Binance to lose market share to Asian exchanges
While Binance started the year with a 66% share of the perpetual futures contract trading volume, June data shows that this figure has decreased by approximately 10% to 56.7%. Recently, Binance delisted a perpetual futures contract related to the Luna Classic (LUNC) token.
The exchange has also experienced a decline in spot trading volume since the CFTC and subsequently the Securities and Exchange Commission (SEC) filed lawsuits against it.
The recent withdrawal from affluent jurisdictions such as France, the Netherlands, and Canada, along with the cancellation of the fee-free promotion program, may have contributed to an 11% decrease in spot trading volume.
Asian competitors Bybit and OKX appear to have gained a significant portion of the trading volume that Binance lost.
In March, Binance continued to charge fees for BTC trading pairs with stablecoins, except for TrueUSD (TUSD). TUSD accounted for over 10% of the BTC spot trading volume on Binance and 20% globally.
The US CFTC has accused Binance of allowing US-based companies unauthorized access to its over-the-counter trading desk earlier this year. According to the Commodity Exchange Act, companies seeking to offer derivative products to customers must register with the CFTC. The litigation is still ongoing.
In another lawsuit, the US SEC has accused Binance of mishandling customer funds and providing unregistered securities.