Recent data from Kaiko indicates that Bitcoin is trading at a significant discount on Binance.US, creating a favorable arbitrage opportunity for traders. This information is further supported by data obtained from Cryptocompare. On Binance.US, the leading digital asset is currently priced at $29,523, which is $500 lower than its value on major rival platforms like Coinbase, Kraken, and BitStamp, among others. However, it is important to note that this discount only applies to assets paired with the USD, as cryptocurrencies paired with stablecoins like USDT and USDC are trading at regular prices, as confirmed by Coingecko.
Binance.US has been facing significant challenges regarding USD liquidity ever since its banking partners ceased their payment channels. As a result, there has been an outflow of fiat currency from the platform as it transitions into a “crypto-only” exchange.
The filing of a lawsuit against Binance US by the U.S. Securities and Exchange Commission (SEC) on June 5 has led to price fluctuations for Bitcoin trades on the exchange. Kaiko reported that between June 6 and 8, BTC traded at a 2.5% premium due to an illiquid market. Furthermore, on June 12, Bitcoin traded at a 1% premium on Binance.US following a significant drop in the exchange’s market depth by 78% within a week of the SEC’s lawsuit. Notably, on June 21, Bitcoin experienced a flash pump and briefly reached over $138,000 during early trading hours on the platform.
The issues faced by Binance.US are interconnected with the legal troubles of its parent company, Binance, which currently faces lawsuits from both the SEC and the U.S. Commodity Futures Trading Commission (CFTC). These challenges extend beyond the United States, as Binance recently exited three European markets, including the United Kingdom, Netherlands, and Cyprus, within the past week. Additionally, the exchange had to issue a cease-and-desist letter to an unauthorized entity called “Binance Nigeria Limited,” which was declared illegal by the Nigerian Securities and Exchange Commission.