Trading volume on Binance.US, the American branch of global crypto exchange Binance, hit a new low in September. This comes amid challenges such as board departures and continued pressure from regulators. On September 16, trading volume was only $5.09 million. The lowest volume of the month was on September 9th at just $2.97 million.
Volume of major crypto exchange at low point
This drop in trading activity is the result of increasing pressure from regulators. On June 5, the US Securities and Exchange Commission (SEC) filed a lawsuit against Binance and Binance.US. The SEC accuses the companies, among other things, of selling unregistered securities Wash trade. Since the lawsuit began, Binance.US has suspended trading in more than 100 tokens. This has undoubtedly contributed to a sharp decline in trading activity.
It looks like Binance.US’ troubles are not over yet. The SEC recently accused the exchange of failing to cooperate with the ongoing investigation. For example, the exchange would not provide sufficient documents. The SEC has requested a court order to force Binance.US to provide the required documents. On September 15, the judge granted the SEC’s motion.
New leadership for Binance
Additionally, Binance.US is struggling with internal issues, including the departure of CEO Brian Shroder and other board members. Responding to speculation about Shroder’s departure, Binance CEO Changpeng “CZ” Zhao said the executive was taking a “deserved break.” It is entirely possible that the departures are due to continued pressure from the authorities.
CZ notes that current regulatory issues require new leadership for Binance.US. He emphasizes that regulation in the United States is “evolving rapidly and becoming increasingly hostile.” He explains that Binance.US needs leadership that has the skills to handle it. For now, it remains a challenge for Binance.US to navigate the increasingly complex regulatory environment in the United States.