October 4, 2021
By Tom Wilson
LONDON (Reuters) – Trading volumes at major cryptocurrency exchange Binance shot up between July and September, suggesting that a recent crackdown by regulators around the world had little impact on the platform’s business.
Concerned about consumer protection and the standard of anti-money laundering controls in cryptocurrency exchanges, regulators from Britain and Germany to Hong Kong and Japan have stepped up pressure on Binance in recent months.
Some banned the platform from certain activities, while others warned consumers that it was not licensed to operate in their jurisdiction. Binance in response tightened anti-money laundering controls and cut its product line.
Yet Binance’s spot cryptocurrency trading volumes totaled $ 789 billion in September versus $ 454 billion in July, according to British researcher CryptoCompare data compiled for Reuters, with Binance solidifying its status as an asset platform. largest digital in the world.
The data showed that derivatives volumes increased nearly 25% to $ 1.7 trillion.
A Binance spokesperson declined to comment.
The growth in volumes mirrored that of other major crypto platforms, including San Francisco-based Coinbase Global Inc, as cryptocurrency prices soared. The price of bitcoin, the largest cryptocurrency, rose by more than a third in July and August, raising the price of smaller coins, and remained flat in September.
Singapore’s regulator last month became the latest in a major financial center to target Binance, warning it could violate local laws and should stop providing payment services to city-state residents.
The move prompted Binance to prevent Singapore users from buying and trading cryptocurrencies on its core platform, the latest in a series of moves by the platform to reduce its range of crypto products that could be overseen by regulators.
Binance began closing its derivatives business across Europe in July and also restricted derivatives trading by Hong Kong users. It also ditched its stock-related digital token offerings.
Binance said in August it would require stricter customer background checks to strengthen anti-money laundering efforts.
(Reporting by Tom Wilson; Editing by Rachel Armstrong and Mark Potter)
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