In February, Binance controlled 57,5% of the average monthly volume of global cryptocurrency exchanges. But after the US Ministry of Justice began an investigation into cooperation with the Russian Federation, this figure dropped to 43%.
As of Financial Times citing CCData research, the company's market share has been falling for several months amid an investigation by a US regulator into possible violations of federal laws.
In addition to regulators, the fall was also triggered by the end of a promotion in March that offered customers free, commission-free bitcoin trading that fueled the rally late last year.
Bloomberg writes that the investigation, which is being conducted by the Department of Justice's national security division, is aimed at finding out whether Binance Holdings Ltd. to help Russians circumvent US sanctions and transfer money through the world's largest cryptocurrency exchange.
In a statement, Binance noted that the company fully complies with all US and international financial sanctions, and that the company's "know your customer" protocols rival any in the traditional banking system, and each customer must pass a background check that includes verification of country of residence and personal identification.
"Our policy requires zero tolerance for double registration, anonymous identities, and hidden sources of money," Binance added.
The war in Ukraine and Binance
On March 8, 2022, the cryptocurrency exchange Binance announced that it will block transactions with Visa and Mastercard cards in Russia. The restrictions came into effect at midnight on March 10, Moscow time.
On March 22, 2022, the world's largest crypto exchange Binance disconnected Russian banks. All ads were automatically closed by the system.
On April 21, 2022, the Binance crypto exchange restricted access for users from Russia.
On May 12, 2022, Binance closed transfers and withdrawals for Russians.
On May 6, 2023, the Binance crypto exchange was suspected of helping the Russian Federation.
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