This summary text is fully AI-generated and may therefore contain errors or be incomplete.
The legal troubles faced by Binance, the world’s largest cryptocurrency exchange, have had a significant impact on the market. According to analytics firm Kaiko, following Binance’s $4 billion settlement with the US government and its former CEO’s admission of violating anti-money laundering laws, other exchanges such as Coinbase and Bybit have seen their market share grow. Coinbase, in particular, experienced a boost in November, with the news of Binance’s settlement adding fuel to the fire. Kaiko suggests that Binance has lost some market share to Coinbase during non-US trading hours and to Bybit overall. However, there is also an argument to be made that Binance’s resolution of its legal issues could lead to clearer skies ahead for the exchange. While it is too early to make sweeping predictions, early trends indicate that Binance may not face dire consequences, while Coinbase and Bybit stand to benefit. The email from Coinbase to its customers, informing them of a subpoena from the CFTC related to Bybit, adds an interesting twist to the competition between these exchanges. It remains to be seen whether Binance will continue to lose market share or if its compliance efforts will increase trust in the exchange. The past couple of years have shown that there is some stickiness to liquidity and volumes, with users preferring to stick with the exchanges they are already using.