Binance Exchange Ordered to Exit Malaysia. Will Binance Remain the Largest Cryptocurrency Exchange?

   2021-08-01 11:08

Aug 01, 2021 at 10:48 // News

Binance could lose its position if the trend continues

The world’s largest crypto exchange Binance has suffered another shutdown in Malaysia as the company continues to crack down globally.




However, other crypto exchanges like Coinbase are steady and reaping more. Binance could lose its position if the trend continues.


A tough time for Zhao Changpeng


Binance, the world’s largest cryptocurrency exchange by volume, may no longer remain the leading cryptocurrency exchange as it faces a large-scale shutdown from all sides. The Financial Conduct Authority (FCA), the

UK’s financial services regulator, banned Binance in June, giving some of Binance’s closest competitors, crypto exchanges like Bitstamp, Kraken and Gemini, or even Coinbase, room to thrive.


In Japan, regulators shut down Binance in March 2018 for failing to comply with Japanese Financial Services Agency (FSA) requirements. The funny thing is that after being kicked out of Japan, the company rushed to European Union to face even more scrutiny. 


And that’s not all. The Hong Kong Securities Regulatory Commission Futures Commission (SFC) has just banned Binance from trading equity tokens on Hong Kong. The Hong Kong regulator said Binance does not have a license to offer trading in equity tokens in its jurisdiction. 


The list is endless. Canada, Thailand, Germany, Italy and Lithuania have all

issued warnings or bans on at least one or many of the Binance services offered in their respective countries. In December 2020, the company shut down its operations in Uganda, one of the most crypto-friendly countries in Africa.


Binance announced yesterday on its website that it will close its futures and derivatives services in key European countries, including Germany, Italy and the Netherlands.


“Binance will discontinue its futures and derivatives services in Germany, Italy and the Netherlands,” 


the announcement on the company’s official website reads.


On the same day, Malaysian Authorities finally ordered Binance to leave the country after the company was warned and placed on the warning list for almost a year. The company was ordered to disable all working Telegram handles with Malaysian memberships and take down its website and app from Malaysian soil.


binance.jpg


Other crypto exchanges reap big rewards as Binance pulls back


While Binance continues to receive kicks from all corners of the world and reap losses, its competitors are gaining popularity and maximizing their profits.


After Binance left the UK jurisdiction, Bitstamp, a Luxembourg-based cryptocurrency exchange popular in the UK, Slovenia and the US, saw a surge in customers. Just a day after Binance was expelled from the UK by the FCA, the company announced that its UK customer base had increased by 138%, adding to its initial 570% customer growth when it joined the new US market.


Other exchanges that have experienced crazy growth during this time include Kraken and Gemini, both of which received more signups from the UK after Binance closed. Even more concerning for Binance is Coinbase, the company’s closest competitor, which saw revenue growth of 302% in 2021 and is warming up for even greater heights.


Although Binance is still by far the largest cryptocurrency exchange, both in terms of trading volume and revenue, its rivals can catch up if the current pressure from around the world continues. Binance’s CEO has consistently assured clients that the company is working hard to address the regulatory disadvantages it currently faces, but that has yet to come to fruition as countries continue to target Binance.

Source: https://coinidol.com/binance-ordered-exit-malaysia/

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CryptoCurrencyUSDChange 1hChange 24hChange 7d
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Ethereum2,929.4 0.47 % 4.83 % 14.48 %
Tether0.9993 0.20 % 0.36 % 0.39 %
Cardano2.110 1.20 % 1.19 % 11.86 %
Binance Coin359.57 0.32 % 3.42 % 13.21 %
XRP0.9357 0.60 % 1.47 % 14.65 %
Solana132.22 0.41 % 7.59 % 15.98 %
USD Coin0.9998 0.07 % 0.20 % 0.22 %
Polkadot28.26 0.64 % 5.99 % 24.70 %
Dogecoin0.2099 0.89 % 0.76 % 12.94 %
Avalanche64.44 0.40 % 4.43 % 25.36 %
Binance USD0.9980 0.44 % 0.17 % 0.49 %
Terra27.43 0.93 % 5.64 % 22.79 %
Uniswap19.99 0.76 % 6.70 % 22.29 %
Chainlink22.72 0.31 % 5.79 % 25.47 %
Litecoin153.45 0.39 % 4.57 % 16.26 %
Bitcoin Cash521.34 0.33 % 4.56 % 18.60 %
Algorand1.690 0.98 % 5.06 % 17.20 %
Cosmos33.00 1.04 % 9.88 % 3.88 %
Wrapped Bitcoin40,728 1.65 % 5.40 % 9.79 %