binanceThe world's largest cryptocurrency exchange, has seen a sharp drop in market share among non-dollar cryptocurrency exchanges.
According The Block dataBinance's market share among a group of exchanges that includes major Asian players such as Upbit, Huobi, Bybitand OKX reached 54% in August and is expected to fall further to less than 51% in September.
This is because the exchange had a 75% market share among these exchanges at the end of 2022.
In June, the Financial Times reported that Binance market share had decreased by 25% during the period between February and June.
The report claimed that the world's largest cryptocurrency exchange accounted for 57.5% of the average monthly volume of all cryptocurrency transactions in February, but its market share fell to 43% by the end of May.
Meanwhile, Binance co-founder Yi He addressed the exchange's shrinking market share in a recent letter to the company's employees.
He said employees must focus on creating great products and providing a great user experience for all customers, regardless of regulatory pressure or growing competition.
Yi He compared the current situation to the 2019 crypto recession.
He recalled that back then, Binance did not offer many of its current products, including a fiat gateway, Binance P2P, Binance Futures, and more.
But even then, Binance managed to become the leader and โturn the tablesโ in the segment.
"This is not the first time, nor will it be the last confrontation (...) Every battle is a life or death situation, and the only thing that can defeat us is ourselves."
Binance faces increasing regulatory scrutiny
Binance has been under increased regulatory scrutiny globally since the market turbulence of the previous year.
In June, the The SEC sued Binance and its CEO for its โflagrant disregard of federal securities laws,โ revealing 13 charges against the platform, including operating an unregistered exchange.
The agency accused Binance of violating the law by offering unregistered securities to the general public, including its BNB token and BUSD stablecoin.
Additionally, French authorities visited Binance's office in France last month. They are investigating allegations of illegal provision of digital asset services and aggravated money laundering.
He The exchange was also ordered to cease. operations in Nigeria by the country's Securities and Exchange Commission (SEC).
Binance has also faced regulatory challenges in multiple European countries, such as Belgium and Austria, as it prepares to comply with the EU's upcoming Markets for Crypto Assets (MiCA) regulations.
More recently, some of the exchange's clients in the EU were blocked to cash out euros as part of an early change to the crypto exchange's regional payments provider looms.
