Binance, the world’s largest crypto exchange, has seen $831 million of net outflows in the past 24 hours, according to blockchain intelligence firm Nansen. This is likely due to a regulatory crackdown on the Paxos-issued Binance USD (BUSD) stablecoin, causing investors to reduce their holdings on the platform. Nansen’s data shows that users withdrew $2.8 billion of digital assets in the last 24 hours, compared to $2 billion of deposits during the same period. This is a clear sign that investors are concerned about the regulatory environment and are taking their money off the platform.
Paxos has been ordered by the New York Department of Financial Services to halt issuing the $16 billion BUSD stablecoin, and a looming enforcement action by the U.S. Securities and Exchange Commission (SEC) has caused investors to withdraw their funds from Binance. This marks the largest, daily net outflows from Binance since November, surpassing December outflows when the exchange’s lackluster report about its reserves alarmed investors. The news has caused concern among crypto investors, as BUSD is the third-largest stablecoin and accounts for 35% of all Binance trading volume.
Binance, one of the world’s largest cryptocurrency exchanges, has been hit with a major blow from a regulator. The exchange has $13.4 billion worth of BUSD, the second largest asset in its reserves after Tether’s USDT, accounting for 22% of the $60 billion of assets on Binance. Additionally, BNB, the native token of the Binance-helmed BNB Chain, is estimated to be worth $3 billion or $6.9 billion, depending on the source. This news has caused a significant setback for the exchange, as it now faces the challenge of rebuilding its reserves.
Binance, one of the world’s largest cryptocurrency exchanges, recently faced withdrawal pressure due to the large number of Binance-related assets on its platform. According to Walter Teng, vice president of digital asset research of market analysis firm Fundstrat, Binance may not have enough reserve assets to meet customer withdrawals. On-chain liquidity for BUSD has already dried up, making redemption of BUSD for U.S. dollars or an alternate stablecoin the only viable option for customers to withdraw their funds. Binance is now working to ensure that customers can withdraw their funds in a secure and timely manner.
Changpeng Zhao, CEO of Binance, has reassured investors that their funds are safe with the introduction of BUSD. BUSD is a stablecoin issued and redeemed by Paxos, a regulated financial institution. BUSD is a secure and reliable way to store value, and Binance has taken steps to ensure that customer funds are safe and secure. Binance is committed to providing a secure and reliable platform for its users, and BUSD is a great way to store value and transact with confidence. With BUSD, users can rest assured that their funds are safe and secure.
