On February 13, Binance, the largest crypto exchange, saw an outflow of $916 million, a daily record unseen since November 24, 2022.
According to analytics platform Dune, a massive outflow of funds followed the decision of the US regulatory authorities to ban Paxos from issuing Binance USD stablecoins. In fact, the share of Binance USD in the total trading volume on the exchange is about 25%. The NYC Department of Finance explained the ban by saying that the exchange violated obligations and did not assess risks and verify users.
In this light, the market capitalization of Binance USD dropped to $15.7 billion from $16.1 billion. According to Binance CEO Changpeng Zhao, the ban will make investors shift to other stablecoins. He also fears that the market will lose equilibrium.
Binance suspended USD transfers last week without explaining the reason for the pause. The company is planning to resume USD transaction services in the near future.
