Coinbase’s Bitcoin Reserves Explode Following Binance Events

It has been revealed the fact that Coinbase’s Bitcoin reserves have exploded following the Binance events. Check out the latest reports about the matter below.

Recent on-chain data has revealed that Coinbase, a leading US-based cryptocurrency exchange, is experiencing a surge in its Bitcoin (BTC) reserves.

In contrast, Binance, another popular exchange, is witnessing a sharp decline in its BTC holdings.

Blockchain tracker CryptoQuant’s data shows that Coinbase’s BTC reserves have increased by 12,000 BTC, which is approximately worth $450 million.

On the other hand, Binance’s Bitcoin holdings have decreased by about 5,000 BTC, equivalent to $187 million.

The market intelligence platform also highlights that BTC is moving from Binance to Coinbase.

According to CrypoQuant’s CEO, Ki Young, Binance is under immense global regulatory pressure, giving Coinbase an edge over it.

“Global regulatory pressure on Binance.

-Coinbase absorbs market share with futures trading feature for non-US users.

-Coinbase leads in global trading volume.

-SEC approves spot ETF (exchange-traded fund) without requiring an SSA, citing the majority of trading volume originating from [the] U.S.”

Despite Binance’s legal troubles, non-U.S. customers continue to hold assets on the platform, according to Young.

“Despite regulatory pressure, non-US users persist in keeping their assets on Binance.”

Earlier this week, Binance was hit with a $4.3 billion fine by the U.S. Securities and Exchange Commission for allegedly failing to maintain proper anti-money laundering protocols.

Its founder, Changpeng Zhao, stepped down from his role as CEO and pleaded guilty to the charges.

Coinbase’s CEO, Brian Armstrong, confidently stated that Binance’s legal issues serve as a validation of Coinbase’s long-term strategy of compliance.

According to Armstrong, compliance has always been a key aspect of Coinbase’s business model, and it has helped them build a reputation as a trusted platform.

Armstrong also took a dig at their competitors, who have been offering products that they didn’t believe were legal.

However, with regulators finally taking action, Armstrong believes that there will be a level playing field across the industry.

Despite facing legal troubles, Binance has not experienced a significant loss of funds. In fact, according to blockchain tracker Nansen, Binance’s total holdings had increased in the day after being hit with the fine.