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Kaiko: Binance's Dominance in the Market Could Pose Systemic Risks
Summary: According to DLnews, a recent report by Kaiko indicates that liquidity in the crypto market is overly concentrated on a few platforms like Binance, posing significant structural, operational, and legal risks. The report warns that despite Binance being the world's largest exchange (spot trading volume of $153 billion, open derivative contracts of $270 billion), the ...
According to DLnews, a recent report by Kaiko indicates that liquidity in the crypto market is overly concentrated on a few platforms like Binance, posing significant structural, operational, and legal risks. The report warns that despite Binance being the world's largest exchange (spot trading volume of $153 billion, open derivative contracts of $270 billion), the platform is not formally regulated, has been convicted in the US for anti-money laundering failures, and does not hold an EU MiCA license. The crypto market crash in October resulted in $19 billion in futures positions being liquidated, with Binance experiencing price deviations and account access issues. Kaiko researchers point out that if Binance were to face operational, legal, or technical shocks, it could trigger severe market volatility.
