One of the most widely used and popular centralized exchanges in the world, Binance, has recently had to face a lot of regulatory backlashes. While the exchange is considered a top option as far as crypto trading and other services related to cryptocurrencies go, Binance nevertheless continues to face problems, with the United Kingdom even potentially considering following in the United States’ footsteps and creating its own version of Binance, similar to Binance U.S.
Binance’s suffering means an opportunity for its competition, though, as the Winklevoss twins’ Gemini exchange could end up overtaking Binance to become the biggest cryptocurrency exchange in terms of volume. Cameron Winklevoss, the co-founder of the exchange, stated that because Gemini tends to focus on compliance, it is thus incredibly likely that Binance shall be replaced in the long term due to the fact that regulators continue to intensify the crackdown efforts being made towards those exchanges deemed to be unregulated.
‘Gemini is thinking long term, according to Cameron
It had been reported yesterday that Cameron talked about the significance of having to comply with the regulations and that the Gemini exchange has fully adopted such an approach. Therefore, he added that his exchange should win in the long term primarily because it is a matter of the ‘hare versus the tortoise’ wherein the one who takes it slow and does things by the book will more than likely end up winning the race to become the dominant crypto exchange for the future.
Meanwhile, Binance is not doing too well, as the FCA in the United Kingdom had recently informed Binance that the exchange is not permitted to carry out its activities within the nation due to the lack of adherence to appropriate regulations. What followed thereafter was a blockade of sorts that saw many high-profile street banks curtailing the Binance-related activities of the customers.
Elsewhere, Binance is also facing scrutiny from and is being investigated by the IRS, the CFTC (Commodities Futures Trading Commission), and the United States Department of Justice, therefore adding to the exchange’s woes.
Gemini rises as Binance struggles
Unlike Binance, Gemini is only too happy to comply with the regulations and is working with bitFlyer USA, Bittrex, and Bitstamp in an attempt to hopefully reduce the concerns exhibited by the regulators. It is even taking steps to eliminate fraudulent behaviour and put an end to manipulative actions. Binance does still dominate the cryptocurrency trading volumes, however, with its volume for daily spot trading being higher than Gemini by over 100 times.
Lastly, Coinbase and Kraken had also revealed intentions of consistently complying with regulations.