In June, the BNB exchange balance for major assets such as Bitcoin and Ethereum fell significantly. Binance’s regulatory challenges in a number of jurisdictions in June appear to have resulted in a significant drop in user crypto assets.
Binance users withdraw their funds
According to the exchange’s most recent proof of reserve snapshot, taken on July 1, users’ Bitcoin deposits fell by 3.5% to 592,450 BTC, down from 614.800 on June 1. This meant that during the period, platform users withdrew approximately 22,000 BTC from the platform.
Data confirms that BNB’s BTC exchange has significantly decreased. According to the data aggregator, Binance’s BTC exchange balance fell from 709,001 BTC on June 4 to 651,275 BTC on June 23 before rising to its current balance of 657,536 BTC on July 6.
The Ethereum deposits of exchange users fell by 4.4% to 4.16 million ETH on July 1 from 4.35 million ETH on June 1. This means that over the course of 30 days, exchange users withdrew nearly 200,000 ETH from the platform.
Meanwhile, according to data, BnB’s ETH balance has been declining since the beginning of May, coinciding with a period in which the total number of ETH held across all exchanges fell to a five-year low.
Tether’s USDT is another major crypto asset that has seen its deposits fall in the last month. Binance’s stablecoin balance fell by 1.61 billion to 15.47 billion, representing a 9.45% decrease.
Meanwhile, BNB balance defied the trend of declining deposits, rising 6.6% to 29.7 million BNB as of July 1. Other assets that saw increased deposits were Ripple’s XRP, USD Coin (USDC), and others.
BNB regulatory concerns
BNB faced significant regulatory challenges in several jurisdictions in June. The United States, several European countries, and Nigeria increased their scrutiny of the exchange’s activities.
The Securities and Exchange Commission (SEC) of the United States claimed that Binance’s operation violated federal securities law by offering crypto securities tokens to Americans.
While Binance has stated that it will fight the allegations, CEO Changpeng ‘CZ’ Zhao has stated that the lawsuit is more than just a corporate legal battle; he sees it as an attack on the entire crypto industry.
The exchange lost its European Euro payment partner and left several regional markets, including Austria, the Netherlands, Cyprus, and Germany. During these exits, French authorities raided the exchange office in France, and Belgium issued a cease and desist order against it.
Despite these concerns, a Binance representative told CryptoSlate that the company’s priority was to ensure compliance with Europe’s upcoming Markets in Crypto Assets (MiCA) regulations.
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