Binance Sees Big Drop in Bitcoin Trading Volume Amid SEC Scrutiny

Binance Crypto Regulation
Last updated:
Author
Author
Trent Alan
About Author

Trent has a background and education in journalism and communications, with two decades of experience editing and writing on a diverse array of topics. In recent years, however, he has shifted his...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
bitcoin trading volume, binance trading, coinbase volume, bitcoin volume
Image by 3D Animation Production Company from Pixabay

Binance has seen a massive drop in Bitcoin trading volume this month according to new data from K33 Research. A new report revealed that the platform’s 7-day average spot trading volume for Bitcoin has plummeted by 57% since the beginning of September.

The drop stands out when compared to the relatively stable trading volumes seen on other crypto exchanges, highlighting the difficulties Binance is currently facing.

Regulatory Concerns Cast a Shadow on Binance

The dip in Bitcoin trading volume is closely tied to mounting regulatory pressures on Binance. The platform has recently encountered various legal issues, ranging from lawsuits to license rejections. 

The Securities and Exchange Commission (SEC) has been actively investigating Binance in recent months. A lawsuit was filed against Binance, its U.S. division Binance.US, and its founder Changpeng “CZ” Zhao three months ago, with the SEC accusing the platform of violating multiple federal securities laws. 

Additionally, prosecutors from the U.S. Department of Justice (DOJ) are reportedly considering pressing charges against Binance.

According to Vetle Lunde, a senior analyst at K33 Research, “The ongoing DOJ and SEC cases vs. Binance may have dissuaded market makers from trading on Binance, explaining parts of the decline.”

Lunde also pointed out that while some trading activity may have shifted to other platforms, it’s almost certain that Binance’s legal troubles are adversely affecting market volumes.

Coinbase Gains as Binance Struggles

While Binance is grappling with a drop in BTC trading, the research showed that its U.S.-based competitor Coinbase has seen a 9% increase in volumes over the same period. The contrasting fortunes of these two exchanges indicate that traders might be seeking safer havens amid the crypto regulation storm surrounding Binance.

Another factor that could be contributing to the reduced Bitcoin trading volume on Binance is the termination of its zero-fee promotion for BTC trading with TrueUSD (TUSD) stablecoin. This was one of the most liquid trading pairs on the platform, and its alteration might have deterred traders.

It’s not just the global platform that’s experiencing a drop in trading activity; Binance’s U.S. arm, Binance.US, is also taking a hit. According to data from crypto analytics firm Kaiko, the weekly overall trading volume on Binance.US has plummeted to $40 million, down from nearly $5 billion earlier this yearapproximately a 99% decrease.

The declining Bitcoin trading volume on Binance cannot be seen in isolation. It’s part of a larger picture involving increased scrutiny from authorities like the SEC. 

As Binance tries to survive this difficult period, it is clear that regulatory pressures are having a tangible impact on its trading volumes.

More Articles

Opinions
Opinion: Crypto Has a Trust Problem—Here’s How We Can Fix It
Mona El Isa
Mona El Isa
2025-02-16 18:08:06
Features
Coinbase Just Made Huge Predictions on Crypto’s Future
Connor Sephton
Connor Sephton
2025-02-16 18:03:15
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors