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Binance's Competitors Thrive As The Leading Crypto Exchange Faces More Regulatory Scrutiny

July 23, 2021 5:56 pm
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Binance's Competitors Thrive As The Leading Crypto Exchange Faces More Regulatory Scrutiny

Binance, the world’s largest crypto exchange by trading volume, has been running into trouble with regulators across the globe.

What Happened: However, the exchange’s issues with securities regulators may have benefitted its more compliant competitors, who have reported an influx of new users over the past few weeks.

For instance, Bitstamp, one of the longest-running crypto exchanges, has seen significant growth in the U.K. market, especially after the Financial Conduct Authority’s (FCA) notice stating that Binance was not permitted to undertake any regulated activity in the U.K.

Since June 28, Bitstmap has more than doubled its number of users from the U.K.

It also reported an increase in Bitcoin (CRYPTO: BTC) inflows from their retail clients over the same period.

Julian Sawyer, the global chief executive officer of Bitstamp, puts this down a belief that “all projects must establish a method to comply with regulators in order for the crypto industry to thrive.”

Similar sentiments were observed by Cameron and Tyler Winklevoss, founders of the Gemini crypto exchange.

Last week, Cameron Winklevoss said that he expects Gemini to overtake Binance as the leading crypto exchange in the future by playing the long game focused on compliance.

What Else: Meanwhile, Binance U.S., a crypto exchange operating independently of its parent company Binance, is looking into the IPO route to going public.

Speaking at the Redefine Tomorrow 2021 Summit, Binance’s CEO, Changpeng Zhao, addressed the increased regulatory pressure the exchange is facing across various geographies.

Read also: Gemini, Coinbase And Kraken Embrace Regulation To Challenge Binance's Dominance As Leading Crypto Exchange

The crypto exchange is reportedly working on putting certain processes in place to ensure an unobstructed path to a public offering in the future.

“Binance US is looking at IPO route. Most regulators are familiar with a certain pattern (having HQ, having corporate structure). But we are setting up those structures to make it easier for an IPO to happen,” said Zhao.

Price Action: At press time, Bitcoin was trading at $32,623, gaining 0.71% over the past 24-hours.

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