The recent regulatory backlash Binance is facing could give a competitive advantage to regulated exchanges.
Cameron Winklevoss, Gemini exchange co-founder has stated that the company expects to overtake Binance which is the current largest crypto exchange by volume, predicting its emphasis on compliance will win out as regulators increasingly crack down on unregulated exchanges.
As reported by Bloomberg on July 12, The Gemini co-founder emphasized the importance of adhering to regulators’ demands, stating that Gemini is “playing the long game:”
Binance faces increasing regulatory pressure, with the U.K’s. Financial Conduct Authority told Binance that it wasn’t authorized to carry out regulated activities in the country in late June. A banking blockade followed as several high street banks curtailed their customer’s activities with the exchange.
It was also reported that the U.S. Department of Justice, the Internal Revenue Service, and the Commodity Futures Trading Commission were actively examining parts of the Binance business. However Binance continues to dominate crypto trade volumes, with its analytics platform, CoinMarketCap, estimating Binance’s daily spot trading volume is more than 100 times that of the Gemini exchange.
