New on-chain data reveals that top US-based crypto exchange Coinbase is seeing its Bitcoin (BTC) reserves skyrocket as Binance’s BTC holdings plummet.
According to data from blockchain tracker CryptoQuant, Coinbase’s BTC reserves have increased by 12,000 BTC, worth about $450 million, while Binance’s Bitcoin holdings have decreased by about 5,000 BTC, or $187 million.
The market intelligence platform also notes that BTC is moving from Binance to Coinbase.
According to CrypoQuant chief executive Ki Young, Binance is facing a lot of global regulatory pressure, giving Coinbase an edge against it.
“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, citing the majority of trading volume originating from [the] U.S.”
However, Young notes that even with Binance’s recent legal troubles, non-U.S. customers remain undeterred and are still keeping their assets with the crypto exchange.
“Despite regulatory pressure, non-US users persist in keeping their assets on Binance.”
Earlier this week, Binance was hit with a $4.3 billion fine by the U.S. Securities and Exchange Commission for allegedly failing to maintain proper anti-money laundering protocols. Its founder, Changpeng Zhao, stepped down from his role as CEO and pleaded guilty to the charges.
Coinbase CEO Brian Armstong said that Binance’s legal woes validate Coinbase’s long-term strategy of compliance.
“For us at Coinbase, this is really a vindication of the long-term strategy that we have taken to focus on compliance, make sure we’re building a trusted company…
Sometimes, [our competitors are] able to offer products that we didn’t think were legal and in this environment, we’re seeing that regulators [are] finally acting and they’re creating a level playing field.”
Though Binance has seen withdrawals, it has not experienced a “mass exodus” of funds. According to blockchain tracker Nansen, in the day after being hit with the fine, Binance had seen an uptick in total holdings.
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