In May, Binance was hit by a lawsuit by the U.S. SEC for allegedly breaching the regulator’s rules, pushing its global market share to 52 per cent from 60 per cent at the beginning of the year

The market share of Binance, the world’s biggest cryptocurrency exchange, and its U.S. affiliate have decreased this year, as they face a spate of regulatory clampdowns.

In May, Binance was hit by a lawsuit by the U.S. Securities and Exchange Commission for allegedly breaching the regulator’s rules, pushing its global market share to 52 per cent from 60 per cent at the beginning of the year, as per data company Kaiko.

Binance had begun to give up market share in March after its move to stop zero-fees transactions for some trading pairs, said Dessislava Aubert, an analyst at Kaiko.

Binance’s market share has gone to a range of exchanges with Bybit and OKX faring best, she added.

Binance.US, the supposedly independent partner of Binance, has experienced its U.S. market share plunge to 0.9 per cent on June 26 from more than 22 per cent in April after the exchange gave its customers a deadline of June 13 to take out their dollar funds as the Securities and Exchange Commission requested a court to freeze its assets.

Bucking the trend, Coinbase’s U.S. market share climbed in June to 55 per cent from 48.4 per cent, as it was named as a surveillance partner by Fidelity and other asset managers in filing for a spot bitcoin exchange-traded fund, she added.

Crypto firms disagree that crypto tokens are securities and have repeatedly called for the Securities and Exchange Commission to make clear rules.

Overall spot trade volumes plunged in Q2 to its lowest mark since 2020, Kaiko stated, even as bitcoin rallied towards the end of the quarter to secure a one-year high of $31,458 as several proposals from leading asset managers including BlackRock improved sentiment.