Top crypto exchange Binance has seen its market share plunge in recent weeks amid regulatory issues in the United States, according to crypto data provider Kaiko.

Kaiko notes in a recent newsletter that Binance lost 16% of its market share in just the past two weeks.

The firm notes that the decline occurred in part due to the recent news that the Commodities Future Trading Commission (CFTC) charged the exchange, its CEO Changpeng Zhao, and the companys former chief compliance officer Samuel Lim with a long list of regulatory violations.

However, Kaiko attributes the majority of the lost market share to Binance ending its no-fee trading promotion for 13 BTC spot trading pairs.

Binance lost 16% market share of spot volume in just two weeks after the CFTC lawsuit and end of zero-fee trading. But the trend is quite different when looking at derivatives volumes: Binance only lost about 2% of market share for perpetual futures trade volume. This suggests that the majority of market share was lost purely due to the end of zero-fee spot trading, rather than trepidations around a lawsuit.

The data provider notes that Binance remains the largest exchange in the world with 54% dominance over the global market.

Kaiko also reports that top US crypto exchange Coinbase lost a significant chunk of its domestic market share.

Even Coinbase, which has historically made very strong efforts with regulators, received a Wells Notice focused on its staking service while Kraken was forced to shut down its service earlier this year. Throughout Q1, Coinbases [US] market share dropped from a weekly average of 60% to just 49%.

Generated Image: Midjourney

Excerpt from:

Binance and Coinbases Market Share Slumped in Q1 As Regulators Targeted Crypto Giants: New Report - The Daily Hodl

Yuri Molchan

Binance has shoveled several hundred billion DOGE after coin's trading volume surged 671%

Read U.TODAY on

Google News

According to a few recent tweets posted by the @DogeWhaleAlert, over the past 24 hours, the biggest crypto exchange by trading volume, Binance, has transferred more than 400 million DOGE among its internal wallets.

The two enormous transactions carried 301,667,311 DOGE and 100,906,386 DOGE evaluated at $29,677,728 and $9,927,069.

This was likely to do with redistributing funds between local wallets of the exchange. Overall, after yesterday's news about Elon Musk, Twitter and Dogecoin, the price of the latter surged by 30% within one hour and is now trading at the $0.01009 level, according to CoinMarketCap.

As the price surged, the meme coin's market cap increased by nearly 29%, hitting $13,972,987,874, and the trading volume of DOGE went up by 671%, reaching $5,125,163,854 in the last 24 hours.

Aside from Dogecoin itself, CoinGecko reports that all Doge-related meme coins are on the rise today, too.

As reported by U.Today earlier, on April 3, Twitters usual logo depicting a blue bird was changed for a Dogecoin logo. This pushed the price of the meme coin way up, adding more than 30% overall.

Still, the meme coin is now trading more than 86% below the all-time high of $0.7376 reached in May 2021 after Elon Musk shilled DOGE during his debut on Saturday Night Live.

Still, it seems that after the price surge, many whales began to sell, moving profits off the table. Today Whale Alert spotted transfers of 650 million and 300 million Dogecoin. The first one was made by the fifth largest DOGE holder as he likely moved his meme coins to be sold.

Prominent economist and trader Alex Kruger has tweeted that after the surge of Dogecoin, he believes things on the market are making way for "a massive dog run" that may happen later this year.

He suggested looking back at May 2021 (when Dogecoin hit its historic peak), and November 2021, a little after SHIB surged to an all-time high. His bets among meme tokens are SHIB and SOV.

Continued here:

Half Billion Dogecoin Moved by Binance in Wake of Positive DOGE News - U.Today

(Kitco News)-The global crypto clampdown continues to unfold as Japan has become the latest country to take action against its growing cryptocurrency industry by issuing warning letters to several foreign crypto exchanges informing them that they have been operating in the country without the proper registration.

On Friday, Japans financial regulator, the Financial Service Agency (FSA), sent letters to multiple exchanges including Binance, MEXC Global, Bybit, Bitforex and Bitget warning them that their operations are violating the nations fund settlement regulations by facilitating the exchange of crypto assets without first completing the registration process.

The regulator also said the five exchanges are not the only firms that are non-compliant, and their action does not necessarily indicate the current state of unregistered business.

The regulations in question were first introduced in 2020 and require all cryptocurrency exchanges to register with the agency and obtain a license in order to operate in Japan.

Thus far, Japan has not been as heavy-handed as some other countries when it comes to regulating its crypto industry, but that appears to be changing amid a global push by governments around the world to limit illicit cryptocurrency use and establish a clear regulatory framework for individuals and companies.

For example, the FSA issued its first formal warning letter to Binance and Bybit for operating without the necessary permissions back in 2021, but the exchanges have yet to see any serious consequences for continuing to operate.

The warning from Japan is just the latest in a growing list of Binances woes after authorities in the U.S. sued the exchange and its founder Changpeng CZ Zhao for violating U.S. securities laws.

All exchanges that do not comply with the FSAs regulations and continue to operate without the proper registrations face fines and legal action. This warning highlights the steadily increasing regulator scrutiny that crypto exchanges and companies face in Japan and around the world.

Concerns of illegal activities such as money laundering, fraud, tax evasion and market manipulation have risen amid a growing global banking crisis, and regulators are working to plug any capital outflow loopholes and put a halt to other illicit activities.

While many exchanges have chosen to work with regulators in an effort to continue providing services in certain jurisdictions, others have opted to close up shop and focus on more welcoming governments. Both Coinbase and Kraken, two of the largest exchanges in the U.S., have closed their operations in Japan due to challenging market conditions and the need to cut expenses and refocus their efforts.

On Friday, the cryptocurrency exchange Bittrex announced that it would be exiting the U.S. market after nine years of operation as its just not economically viable for [them] to continue to operate in the current U.S. regulatory and economic environment.

After discussing the nine-year journey, Richie Lai, the CEO and co-founder of Bittrex, said Regulatory requirements are often unclear and enforced without appropriate discussion or input, resulting in an uneven competitive landscape Operating in the U.S. is no longer feasible and Bill, Rami and I will focus on helping Bittrex Global succeed outside the U.S.

The withdrawal of Bittrex from the U.S. market follows the countrys crackdown on crypto banking providers in the wake of the collapse of Silvergate Bank, Silicon Valley Bank and Signature Bank.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Read the rest here:

Japan targets Binance, 4 other crypto exchanges as Bittrex bows out ... - Kitco NEWS

Binance

Just months after the FTX collapse, a US watchdog is suing Changpeng Zhaos firm, the worlds biggest digital-asset market, over a slew of allegations that make jaw-dropping reading

Binance is the worlds largest cryptocurrency exchange and a cornerstone of the $1tn digital asset market. It has 128 million customers, handles $65bn in daily trades and its commercial partners include Cristiano Ronaldo, Italys Lazio football team and TikTok megastar Khaby Lame. So when a US regulator announced last week it was suing Binance for wilful evasion of US law, it was a significant moment for a sector still reeling from the collapse of FTX.

The Commodity Futures Trading Commission (CFTC) filed the civil enforcement action in a federal court in Chicago, seeking punishments including fines and permanent trading bans. It is suing Binances Canadian founder and chief executive, Changpeng Zhao, and three entities that operate the Binance global trading platform over numerous alleged violations of its regulations and of the Commodity Exchange Act. Binances former chief compliance officer, Samuel Lim, is also being sued.

The CFTC alleges that Binance traded in crypto-related derivatives with US-based customers despite not having regulatory permission and despite having said in 2019 that it would no longer serve US customers. Binance said the complaint was unexpected and disappointing as it had already invested an additional $80m ensuring it complies with regulators around the world.

Running to 74 pages, the complaint is a long read, but worth it for its claims about the highly unconventional way that Binance operates, its attitude to regulation, its customers whom senior figures allegedly suggested included terrorists and how its senior operators were apparently willing to put this all down in writing.

It is clear from the evidence presented that the CFTC has access to sensitive material, including the content of Zhaos phone. Howard Fischer, a partner at New York law firm Moses & Singer, says the material could have been handed over to the CFTC by Binance, another government agency could be sharing the evidence with the CFTC or the material could have been provided by a company insider. The CFTC allegations are shocking enough on their own, says Fischer. If they have an inside person who can contextualise and provide communications, that is even worse for Binance and CZ [Changpeng Zhao]. While these are only allegations, of course, they are pretty serious and, if true, put Binance at significant jeopardy.

The CFTC claims Binance knew it had facilitated potentially illegal activity, including with the Islamic militant group Hamas. The complaint says Lim had received information in February 2019 regarding Hamas transactions on Binance and told a colleague that terrorists usually send small sums, as large sums constitute money laundering. Lims colleague replied: Can barely buy an AK47 with 600 bucks.

In a chat about certain Binance customers, including some from Russia, Lim said in February 2020: Like come on. They are here for crime. Binances money laundering reporting officer agreed that we see the bad, but we close 2 eyes.

In another exchange in July 2020, a Binance employee wrote to Lim asking whether a customer whose transactions were very closely associated with illicit activity should be blocked or whether it was in the class of cases where we would want to advise the user that they can make a new account. Lims response included: He can come back with a new account But this current one has to go its tainted.

The complaint details a loophole for getting round KYC [Know Your Customer] procedures. Customers were able to avoid the KYC process if they withdrew less than the value of two bitcoin in one day a sum equal to $22,000 in July 2019.

The CFTC quotes a 2020 chat between Lim and a Binance colleague in which they discuss removing the loophole: If Binance forces mandatory KYC, [rival digital asset exchanges] will be VERY VERY happy.

The complaint quotes Lim saying in an October 2020 chat that Binances compliance environment has amounted to email sending and no action for media pickup.

The CFTC also quotes a Lim message in December 2019 stating that Binance.com doesnt even do AML [anti-money laundering] namescreening/sanctions screening.

It goes on to quote Binances money laundering reporting officer complaining that she had to write a fake annual report to Binance board of directors wtf after a company that had partnered with Binance requested a compliance audit.

Binance is best known through its Binance.com platform, but the CFTC complaint refers to a structural complexity now commonly associated with the crypto industry, describing it as an opaque web of corporate entities.

The CFTC says Binances organisational chart includes more than 120 entities incorporated in jurisdictions around the world, some with commingled funds.

It alleges: Binances reliance on a maze of corporate entities to operate the Binance platform is deliberate; it is designed to obscure the ownership, control, and location.

The complaint targets three of those entities, which it refers to collectively as Binance or the Binance platform.

The Binance platform has yet to establish a global headquarters where it could be regulated. Of the three entities cited, the first, Binance Holdings Limited, holds intellectual property including its trademarks and is registered in the Cayman Islands tax haven. The other two Binance Holdings (IE) Ltd, which in turn indirectly or directly owns 24 other Binance entities, and Binance (Services) Holdings Ltd, which owns the Cayman-based Binance Holdings and at least 40 more entities are registered in Ireland. None of the three is registered with the CFTC.

Zhaos claim that Binances HQ is wherever he is is a deliberate attempt to avoid regulation, says the complaint. It quotes an internal meeting in June 2019 in which Zhao explains why Binance operates via entities in numerous jurisdictions. He says it is to keep countries clean [of violations of law] This is the main reason .com does not land anywhere.

In 2019 Binance announced that its global platform would no longer trade with US-based customers, as it prepared for the launch of Binance. US an affiliated business that is not part of the complaint. The nub of the CFTCs complaint is its assertion that this did not happen. It alleges much of Binances trading volume and profitability comes from extensive solicitation and access to US customers. These customers entered commodity derivative transactions betting on crypto prices for which Binance lacked CFTC approval.

The CFTC says: Defendants have disregarded applicable federal laws while fostering Binances US customer base because it has been profitable for them to do so. This included disregarding laws requiring controls to prevent money laundering and terrorism financing.

The complaint claims Zhao, Lim and other senior Binance managers actively facilitated breaches of US law by helping US customers evade its own compliance controls. For instance it would advise US customers to make transactions via virtual private networks (VPNs) in order to hide their location; allow customers to trade on Binance.com without submitting proof of their identity and location; and tell big-spending customers to open Binance accounts under newly incorporated shell companies.

The CFTC cites Binance publishing a beginners guide to VPNs on its website, with Lim explaining: CZ wants people to have a way to know how to vpn to use [a Binance functionality] its a biz decision.

The CFTC claimed that Zhao is the direct or indirect owner of 300 separate Binance house accounts that have engaged in proprietary trading using Binances own money on Binance. It also refers to companies directly or indirectly owned by Zhao and says he also traded on Binance through two individual accounts. The CFTC says Binance does not disclose that it is trading in its own markets or against its own customers in its terms of use.

VIP customers, or customers who generate a significant income in trading fees for Binance, are given prompt warning of any law enforcement activity related to their account, according to the CFTC.

Based on directions from Zhao, the VIP team was told to contact users through all available means to tell them their account had been frozen or unfrozen at the request of law enforcement. An internal policy on law enforcement requests, created by Lim but directed by Zhao, allegedly states: Do not directly tell the user to run, just tell them their account has been unfrozen and it was investigated by XXX. If the user is a big trader, or a smart one, he/she will get the hint.

The CFTC says avoiding compliance controls for US VIP customers was formalised in a policy called VIP handling in which customers could submit new KYC documentation associated with a shell company incorporated outside the US.

One US VIP customer, an unnamed New York-based outfit called Trading Firm B, was allegedly told it would benefit from a 5- to 10-millisecond advantage over non-VIP rivals. Other perks included reduced trading fees and permission to exceed Binances order-messaging limits.

{{topLeft}}

{{bottomLeft}}

{{topRight}}

{{bottomRight}}

{{.}}

Read the original:

From Hamas warnings to VIP perks and criminal clients: the US regulators claims against Binance - The Guardian

This week in coins. Illustration by Mitchell Preffer for Decrypt.

The news earlier this week that the Commodity Futures Trading Commission (CFTC) is suing the largest crypto exchange in the world, Binance, and its CEO Changpeng CZ Zhao, could have rocked crypto markets.

Instead, the prices of Bitcoin and Ethereum briefly wobbled after the news broke on Monday, then recovered. Bitcoin (BTC) is up 3% over the past week to $28,410 as of Saturday morning, and Ethereum (ETH) is up 4.2% to $1,825.

Most of the top thirty cryptocurrencies are in the same boat, with no substantial change in either direction over the last seven days, but two names posted hefty rallies: Stellar (XLM) leaped 22% and currently trades at nearly $0.11, while XRP blew up 20% to $0.53 thanks to "investor hope" among the XRP army that Ripple's endless case with the SEC might go Ripple's way.

The CFTC is the United States leading derivatives regulator. According to the lawsuit filed with a Chicago federal court, the federal agency accuses Binance of unauthorized derivatives trading by offering futures, swaps, and options on many leading cryptocurrencies.

The suit claims the exchange is offering these services to U.S. clientele despite not having registered with the regulator. It added: Binance has taken a calculated, phased approach to increase its United States presence despite publicly stating its purported intent to block or restrict customers located in the United States from accessing its platform.

Other allegations in the suit accuse the exchange of having insufficient anti-money laundering (AML) and know-your-customer (KYC) controls, knowingly evading or helping U.S. clients evade regulators, and, rather damningly, trading against its own customers.

For its part, Binance told Decrypt on Monday that the lawsuit is: unexpected and disappointing as we have been working collaboratively with the CFTC for more than two years.

On Wednesday the state of Texas introduced Senate Bill 1751, a bill that seeks to protect the states grid during peak electricity loads, but the proposal could mean that local mining operations may soon lack the incentives that have made the state an attractive location for miners.

The bill restricts Bitcoin miners from participating in a state-run demand response program that rewards miners for giving power back to the grid at peak times.

It also blocks "virtual currency mining from tax abatements given that the large scale of growth in virtual currency mining is already projected to occur in the state, according to the bills sponsor Senator Lois Kolkhorst during Tuesday's testimony, who argued theres no need to subsidize the growth.

That same day U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler testified at the House Appropriations Subcommittee on Financial Services and General Government and said that rules for making crypto compliant already existin response to repeated calls by the industry for clearer guidelinesbut that the industry is still rife with noncompliance.

During the hearing, Gensler stuck to his guns in reiterating his belief that most cryptocurrencies are unlicensed securities: Frankly, of the ten or twelve thousand tokens, there are very few that dont have a group of entrepreneurs in the middle that the public is counting on. Those are securities under the securities law.

Finally, across the pond, the Bank of Englands Central Bank Digital Currency (CBDC) lead Katie Fortune said that CBDCs can be a bridging asset between TradFi and crypto.

CBDCs are an envisioned form of centrally-issued cryptocurrency pegged and backed by the state currency, in this case, a digital sterling.

In a talk at the Citi Digital Money Symposium, she said: What you have today is, I have a Santander account, I can go to a cash machine and take out the same cash my friend with a Barclays account takes out. I think that could be really powerful in a world of stablecoins and other digital forms of money to have a central bank digital currency that can be a bridging asset between all these different forms of money."

Originally posted here:

This Week in Coins: Bitcoin and Ethereum Survive CFTCs Binance Crackdown - Decrypt