Binance Experiences Decreasing Bitcoin Derivatives Trading Volume After CFTC Lawsuit
Binance, the world's leading cryptocurrency exchange, has recently seen a decrease in its Bitcoin derivatives trading volume. This follows a lawsuit filed by the U.S. Commodity Futures Trading Commission (CFTC) against the exchange.
The CFTC alleged that Binance allowed U.S. traders to access bitcoin futures and options without registering as a derivatives trading platform, as required by U.S. law.
The CFTC also requested that Binance stop its derivative trading operations in the United States until the case is settled in court, putting further pressure on the exchange.
It appears that the lawsuit has now had an effect on Binance's derivative trading volume, with data from crypto analytics platform skew showing a sharp decline since last month.
This data shows that back in April, Bitcoin futures and options traded on Binance were averaging around 1 million USD per day in volume. This number has since dropped to around 200K USD per day.
It is not clear why Binance’s derivatives trading volume has been declining so sharply but it could be related to the legal action taken against it by the CFTC.
We, at CoinGape believes, this downturn in bitcoin derivatives trading may be temporary and that Binance's volume may eventually recover as traders take more comfort with the regulatory environment surrounding it.