Regulatory hurdles lead Binance users to withdraw assets in June

In the wake of regulatory challenges faced by Binance in June, users of the popular cryptocurrency exchange have been withdrawing their digital assets.

The latest proof of reserve snapshot taken on July 1 revealed a significant decline in Bitcoin deposits. Users’ Bitcoin deposits fell by 3.5% from 614,800 BTC recorded on June 1 to 592,450 BTC, indicating that approximately 22,000 BTC were withdrawn from the platform during the period.

According to Glassnode, a reliable data aggregator, there has been a notable decline in Bitcoin exchanges on Binance. On June 4, the platform recorded its highest exchange balance of BTC at 709,001, but this figure dropped to a low of 651,275 BTC by June 23. Fortunately, there has been a slight improvement, and as of July 6, the exchange balance stands at 657,536 BTC.

In addition to Bitcoin, Ethereum deposits on Binance also witnessed a decline. On July 1, the platform reported a decrease of 4.4% in users’ Ethereum deposits, from 4.35 million ETH on June 1 to 4.16 million ETH. This means that users withdrew nearly 200,000 ETH from the platform over the 30-day period.

Notably, Glassnode data reveals that Binance’s ETH balance has been on a downward trend since the beginning of May. This coincides with a period when the total number of ETH held across all exchanges fell to a five-year low.

Another major crypto asset that saw its deposits fall over the past month is Tether’s USDT. The stablecoin balance on Binance declined by 1.61 billion to 15.47 billion, representing a 9.45% decrease.

However, amid the decline in deposits, Binance’s BNB balance saw an increase of 6.6% to 29.7 million BNB as of July 1. Additionally, other assets such as Ripple’s XRP and USD Coin (USDC) also recorded increased deposits.

The decline in users’ crypto assets on Binance comes as the exchange faced significant regulatory hurdles in various jurisdictions in June.

The U.S. Securities and Exchange Commission (SEC) has accused Binance of violating federal securities law by allegedly offering crypto securities tokens to American citizens.