The post Are Users Switching? Crypto Exchange Trends & Impact appeared on BitcoinEthereumNews.com.

How many users are actually leaving centralized exchanges (CEX), and can their decentralized counterparts (DEX) take the lead in the market? We explore this in the article. How pressure from the US and the EU affects crypto exchanges Cryptocurrency exchanges have long been perceived as analogous to traditional financial institutions, primarily banks. However, regulators are only beginning to actively undertake supervision, and their requirements are not fully understood by the market; For example, everyone knows the problem of classifying various digital assets as securities in the US. On the one hand, American regulators have not developed special requirements for listing cryptocurrencies for crypto exchanges. On the other hand, they penalize platforms for violations of securities laws.  In 2023 alone, SEC initiated more than 40 investigations related to cryptocurrencies, including lawsuits against exchanges Coinbase, Kraken and Binance. In 2024, of the major platforms, Crypto.com and KuCoin were added to the list. The CFTC has not lagged behind. Time after time, the commission brought claims related to commodity futures trading, which the regulator believes some cryptocurrency-related exchange products are.  As a result, Binance was fined record amounts on charges of derivatives-related violations, KuCoin agreed to a fine of nearly $300 million, BitMEX paid $100 million, and Bittrex generally left the market.     The second aspect of the pressure on exchanges is the anti-money laundering and anti-terrorist financing (AML) requirements. All exchanges in regulated jurisdictions must comply with AML/KYC procedures, but it is not always clear to regulators how crypto platforms fulfill these obligations.  In the EU, where Mica regulations are in place and AMLA operates, the crypto business has started talking about over-regulation, but global crypto exchanges still prefer to adapt to the new requirements rather than leave the European market. Platforms are implementing FATF Travel Rule, delist disputed tokens, obtain licenses in every jurisdiction of presence, but still not closing down. Why big platforms are losing…

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Filed under: News - @ April 24, 2025 5:32 pm