Binance market share falls to its lowest since November after the CFTC lawsuit

The figure dropped from 70% to 54%

04.04.2023 - 12:00

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2 min

Binance denied rumors that its chief executive officer Changpeng “CZ” Zhao faces a Red Notice request issued by The International Criminal Police Organization to locate and arrest the crypto founder.

“This rumor is not true,” the spokesperson said in an emailed statement to The Block.

The rumor, which was magnified by crypto Twitter personality ‘Cobie,’ triggered a drop in the price of Binance’s BNB token as well as the broader market. In a tweet, Cobie shared a sequence of numbers and letters encrypted using the SHA-256 hash function, as reported by CoinDesk.

Binance has found itself in the crosshairs of U.S. regulators, with the Commodities Futures Trading Commission announcing last month its own civil enforcement action against the exchange. The complaint charges CZ and Binance with violating the Commodity Exchange Act and other CFTC regulations.

A Red Notice is a request to law enforcement worldwide to locate and arrest a person pending extradition, surrender or similar legal action.

Binance also witnessed its lowest bitcoin (BTC) trading volume since July 2022 on March 27 after it halted its no-fee trading promotion for 13 bitcoin spot trading pairs. “Binance’s excess volume largely vanished with the end of zero-fee trading, which was reflected in an even dispersal in market share among the remaining exchanges,” Kaiko said.

Kaiko noted that as global exchanges are increasingly being targeted by regulators, the U.S. market is particularly fragile now for the remaining crypto exchanges.

In the U.S., crypto exchange Coinbase's (COIN) market share dropped in the first quarter, falling to a weekly average of 49% from 60% during the quarter, while Binance.US picked up the slack. Its share rose to 24% from 8% during the quarter, Kaiko said.

This material is taken from the website https://www.coindesk.com.

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