Despite an upswing in cryptocurrency prices, Binance users have withdrawn over $500 million in October due to persisting regulatory concerns.
Binance has experienced approximately $525 million in net outflows this month, even as positive developments in the crypto market, such as the potential launch of a spot Bitcoin ETF in the U.S., have unfolded.
These withdrawals follow a trend from previous months, with over $840 million pulled in September and nearly $4 billion in June. The decline in September was partially attributed to Binance ending a zero-fee trading promotion.
The U.S. Securities and Exchange Commission filed a lawsuit in June against Binance, accusing them of “blatant disregard for federal securities laws,”. The exchange was alleged to have unlawfully solicited U.S. investors to buy, sell, and trade crypto asset securities.
Binance has refuted these charges, stating that they were “unjustified” and that they “respectfully disagree with the SEC’s allegations”. However, whether the exchange and its founder will be criminally indicted in the U.S. remains a question.
In the meantime, Binance is gearing up for a possible protracted legal battle, hiring several former officials from U.S. government agencies to enhance its legal compliance operations.
Despite this, Binance users continue to withdraw funds. In stark contrast, rival exchange OKX has reported net inflows of $560 million this month.
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