Regulatory pressure from U.S. authorities has led to the lowest trading volumes on centralised crypto exchanges in over four years. A report from CCData highlighted a 15.7% drop in spot and derivatives trading volumes in May compared to April.

On June 7, a summons was issued to Binance CEO Changpeng Zhao (“CZ”) by the U.S. district court in Washington, D.C. On June 5, the U.S. Securities and Exchange Commission (SEC) filed 13 charges against Binance Holdings Ltd., its U.S.-based affiliate BAM Trading Services Inc., and their founder, Changpeng Zhao (“CZ”); the charges include operating unregistered exchanges, broker-dealers, and clearing agencies, misrepresenting trading controls and oversight on the Binance.US platform, and the unregistered offer and sale of securities.

The Financial Conduct Authority (FCA), the UK's financial watchdog, announced new restrictions for crypto advertisers on June 7. Set to come into effect from October 8, the new rules will impose stricter regulations on the promotion of crypto services.

Top stories in the Crypto Roundup today:

•   Exchange Trading Volumes Fall to Four-Year Lows Amid Regulatory Crackdown
•   Binance CEO Changpeng Zhao Summoned by U.S. Court Following SEC Lawsuit
•   Crypto Advertisers in the UK to Face Stricter Rules from FCA

Exchange Trading Volumes Fall to Four-Year Lows Amid Regulatory Crackdown

Regulatory pressure from U.S. authorities has led to the lowest trading volumes on centralised crypto exchanges in over four years. A report from CCData highlighted a 15.7% drop in spot and derivatives trading volumes in May compared to April.

Binance suffered the most, with its market share dropping to 43%, down from 57% in February. The decline is linked to Binance eliminating zero-fee trading for USDT pairs and the intensifying scrutiny from U.S. regulators. Other exchanges like Bullish, Bybit, and BitMEX benefited, gaining more than 1% in market share.

On June 5, the SEC filed 13 charges against Binance Holdings Ltd., its U.S.-based affiliate BAM Trading Services Inc., and their founder CZ. Following the lawsuit, Binance saw over $500 million in net outflows, but assured users their assets were secure.

The aftermath of the lawsuit saw a 444% surge in the median trading volume across the top three decentralized exchanges. Despite overall declines, the market share of derivatives trading across centralized exchanges increased to 79.5% of the entire crypto market, up from 78.3% in April.

Binance CEO Changpeng Zhao Summoned by U.S. Court Following SEC Lawsuit

On June 7, a summons was issued to Binance CEO Changpeng Zhao by the U.S. district court in Washington, D.C. On June 5, the U.S. Securities and Exchange Commission (SEC) filed 13 charges against Binance Holdings Ltd., its U.S.-based affiliate BAM Trading Services Inc., and their founder, CZ; the charges include operating unregistered exchanges, broker-dealers, and clearing agencies, misrepresenting trading controls and oversight on the Binance.US platform, and the unregistered offer and sale of securities.

The court-issued summons was clear, stating, "A lawsuit has been filed against you." While the document does not demand CZ’s physical presence in court, it imposes a legal obligation for him to respond once the summons is served. 

Upon service of the summons, both Binance and CZ will have a 21-day period to respond. If they fail to provide a response within this timeframe, the court could enter a judgment by default against them, granting the relief demanded in the SEC's complaint.

In response to the SEC's charges, Binance issued a statement denying the allegations. The company insists that it is markedly different from other exchanges, particularly those that have experienced failures in the past. Binance staunchly refutes any implication that it misused consumers’ funds or manipulated collateralized borrowings.

Crypto Advertisers in the UK to Face Stricter Rules from FCA

The Financial Conduct Authority (FCA), the UK's financial watchdog, announced new restrictions for crypto advertisers on June 7. Set to come into effect from October 8, the new rules will impose stricter regulations on the promotion of crypto services.

The FCA said that crypto firms are required to implement a "cooling-off period" for new investors starting from October 8. Additionally, the sector must eliminate "refer a friend" bonuses, which will be prohibited under the new regulatory measures. 

Sheldon Mills, the FCA's executive director of consumers and competition, stated in a written announcement: "It is up to people to decide whether they buy crypto. But research shows many regret making a hasty decision. Our rules give people the time and the right risk warnings to make an informed choice."

The announcement underscores the crypto industry's need to prepare for this significant shift. The FCA is currently working on supplementary guidance to assist them in meeting these new expectations.

The FCA's announcement today asserted that the measures taken to address crypto ads are consistent with the restrictions introduced last year for high-risk investment ads. The authority is also seeking contributions on its additional guidance for crypto advertisers, with a deadline set for August 10.

State of the Crypto by Top Tier Exchange Volume

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