Binance Bitcoin Open Interest Surges Despite Legal Scrutiny
Open interest and liquidity across Binance crypto and Bitcoin derivatives markets have vastly improved, suggesting investors’ confidence in the sector.
As such, 2020/2021 for Binance has been a breakthrough for derivatives markets. Such hiccups have Led to the current meteoric rise of Binance Futures.
Binance Faces Regulation Defaults
While Binance luxuriates on this achievement, it is beleaguered with various legal accusations. The accusations range from issues connected with money laundering, tax evasion, unauthorized service offering, and more.
In addition, the world’s biggest cryptocurrency exchange has had its payment activities halted by Barclays just a day ago.
Various other financial regulatory bodies in places like Ontario, Thailand, Japan, Cayman Islands, and even the UK have all publicly clamped down.
The prominent exchange recently had issues concerning offering financial services in their country without obtaining authorization from the respective authority.
Issues on regulation about the UK, just last month (June), the cryptocurrency exchange-Binance, was issued a warning by the country’s financial regulator.
Binance UK’s Indictment
The financial body for the State FCA (Financial Conduct Authority) sanctioned that the blockchain company cannot operate any “regulated activity” in the UK.
In addition to the embargo laid, It also advised people to be wary of adverts promising high returns on Bitcoin investments.
Nonetheless, the unfriendly action, the FCA was not at any rate seeking to regulate Binance or cryptocurrencies. On the contrary, the financial body only requires exchanges like Binance to register with them before carrying out financial operations.
Binance has yet to register with the regulators and thus it’s not allowed to run an exchange in the UK.
Bitcoin Thrives Despite Binance Financial Ordeal In The U.S.
The crypto exchange, since two months back, has been engulfed in investigative waters of the US justice departments. The issues are similar to elsewhere: money laundering, unauthorized services offering, and tax evasion.
As part of the probe into Binance’s operations, the US officials who probe money laundering and tax offenses have sought information from individuals with insight into Binance’s business.
However, like the blockchain industry it operates in, the exchange has prospered because of the lack of government control.
Despite the FCA, US Justice Department, and other world regulators’ push against Binance and other crypto-platforms. The Bitcoin market future gets more substantial amidst the turbulence.
Like it once said, the regulator’s activities are indeed having “no direct impact” on the services it provides from its website Binance.com.
Binance Bitcoin Open Interest Spikes
According to Arcane Research, Binance’s dominance in the Bitcoin prospect markets is at an all-time high. A share of the global open interest currently sits at 25% of the total open interest in the futures market-a record-breaking achievement for Binance.
Since last year, open interest increased from $2.5 billion on January 1st to $4 billion by January 31st. Presently, open interest in BitMEX, OKex, and Huobi dominates the industry, adding up to 80% of the industry.
Meanwhile, newcomers like Binance Futures have recorded fast-growing open interest across all of its crypto futures offerings.Source