In this month, Bitcoin (BTC) trading volumes on Binance have declined, as lawsuits and claims from regulatory bodies are being observed worldwide.
According to K33 Research, since the beginning of September, the average 7-day spot trading volume of BTC on Binance has decreased by 57%, while on several other exchanges, it has remained nearly unchanged. The volumes of its American competitor, Coinbase (NASDAQ: COIN), have increased by 9% during this period.
The sharp drop occurred when several lawsuits were filed against Binance, along with license denials and public accusations.
The actions taken by the U.S. Department of Justice and the Securities and Exchange Commission against Binance may have deterred market-makers from trading on the platform, partially explaining the decline, according to Vetle Lunde, Senior Analyst at K33 Research.
On September 7, Binance discontinued the promotion of zero-commission trading of BTC with the stablecoin TrueUSD (TUSD), one of the most liquid trading pairs on the platform, which may have also contributed to the decline.
