Binance.US, the American affiliate of the world’s biggest cryptocurrency exchange, has come under intense scrutiny from regulators and lawmakers. The scrutiny of Binance is part of a wider crackdown on centralized exchanges over their obscure operations.
Already witnessing a dropoff in trading volume and activity on the platform, a new hybrid exchange, Tradecurve, is experiencing a surge of interest from crypto traders as it offers solutions to some of the challenges of Binance.
- Binance has come under intense regulatory pressure from regulators over its operations.
- According to regulators, Binance breached security laws and mismanaged users’ funds.
- Amidst the regulatory scrutiny, Tradecurve has emerged as a top challenger of Binance as it offers solutions to some of the challenges of the centralized exchange.
Binance Under Regulatory Scrutiny
On June 5th, the Securities and Exchange Commission (SEC) filed 13 lawsuits against Binance U.S. and its founder Changpeng Zhao as the regulator moved to tighten its reins over the crypto industry.
According to the SEC, Binance breached several securities laws, misrepresented trading control, commingled user funds worth billions of dollars, and sold unlicensed securities on its platform.
The regulatory scrutiny of Binance comes as lawmakers are trying to put together a framework for the regulation of the industry. In putting together these rules, Binance has been found to have faulted, operating without the required registration in the United States.
In France, Binance is under even more regulatory scrutiny as the exchange and its authorities have been accused of illegally canvassing its clients and aggravated money laundering. Binance has come out to verify the legitimacy of the lawsuit, saying it would work with the regulators on compliance requirements.
New Hybrid Exchange Proffers Solution to Challenges of Binance
Like other centralized crypto exchanges, transparency and the commingling of user funds are challenges Binance faces and a new hybrid exchange could solve these problems.
As a hybrid exchange, Tradecurve combines features of centralized exchanges with those of decentralized exchanges to create a transparent platform where users manage their own private keys.
Because users manage their private keys, issues of commingling of funds cannot occur. Another challenge Tradecurve would solve is the decentralization of the trading platform.
Since it retains this aspect, Tradecurve will not be controlled by regulated entities, which are in turn, subject to the oversight of regulatory authorities. Hence, the current regulatory scrutiny of Binance will be a non-issue.
Already, traders are moving from Binance to hybrid exchanges like Tradecurve because of these features. In May, the crypto exchange market share of Binance fell for the third consecutive month.
Binance now has a market share of 43%, a significant down from February when it peaked at 57%. This has helped the price of Tradecurve’s native token increase from $0.015 to $0.018, offering a great opportunity for investors to get in early before its price journeys to the $1.5 per token as predicted by experts in 2023.
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