New on-chain data shows that US crypto exchange Coinbase is seeing its Bitcoin (BTC) reserves skyrocket while Binance’s BTC holdings are plummeting.
According to data from blockchain tracker CryptoQuant, Coinbase’s BTC reserves are increased by 12,000 BTC, worth about $450 million, while Binance’s Bitcoin holdings decreased by about 5,000 BTC, or $187 million.
The market intelligence platform also notes that BTC is switching from Binance to Coinbase.
According to Ki Young, CEO of CrypoQuant, Binance is confronted There is a lot of global regulatory pressure, which gives Coinbase an advantage.
“Global regulatory pressure on Binance.
-Coinbase absorbs market share with futures trading feature for non-US users.
-Coinbase leads in global trading volume.
-SEC approves spot ETF (exchange-traded fund) without requiring an SSA, with the majority of trading volume coming from [the] US”
However, Young notes that even with Binance’s recent legal troubles, non-US customers are undeterred and are still keeping their assets with the crypto exchange.
“Despite regulatory pressure, non-US users continue to hold their assets on Binance.”
Earlier this week, Binance was fined $4.3 billion by the U.S. Securities and Exchange Commission for allegedly failing to maintain proper anti-money laundering protocols. Its founder, Changpeng Zhao, resigned from his role as CEO and pleaded guilty to the charges.
Coinbase CEO Brian Armstong said Binance’s legal troubles validate Coinbase’s long-term strategy of compliance.
“For us at Coinbase, this really validates the long-term strategy we have been pursuing to focus on compliance, to ensure we are building a trustworthy business…
Sometimes, [our competitors are] able to offer products that we didn’t think were legal, and in this environment we see that regulators [are] finally act and they create a level playing field.”
While Binance has seen withdrawals, it has not experienced a “mass exodus” of funds. According to blockchain tracker Nansen, Binance had seen an increase in total holdings the day after being hit with the fine.
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Generated image: Midjourney
