Crypto Exchange Binance Allows Traders to Hold Assets at Independent Banks
Crypto exchange Binance has reportedly started allowing its larger traders to hold their assets at independent banks, including Switzerland’s Sygnum Bank and FlowBank. This move comes after concerns about the risks of crypto exchange custody following FTX’s collapse in 2022 and Binance’s $4.3 billion settlement with U.S. authorities in November.
Binance’s Legal and Regulatory Issues Impact Market Share
Binance faced a challenging year in 2023, with legal and regulatory issues, including the settlement with U.S. authorities and a lawsuit from the SEC. As a result, its market share among non-USD exchanges dropped from over 70% to a low of 44%. However, data from Kaiko suggests that Binance’s market share has since rebounded to around 50%, attributed to zero-fee promotions and spot bitcoin ETF hype.
Hot Take: Binance Prioritizes Security with Bank Custody Option
Binance’s decision to allow traders to hold assets at independent banks reflects its commitment to addressing security concerns. By partnering with established banks like Sygnum Bank and FlowBank, Binance aims to provide its users with a safer alternative for storing their crypto assets. This move also demonstrates Binance’s efforts to regain trust and rebuild its reputation after a challenging year filled with legal battles and regulatory issues.
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