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How Can Coinbase, Kraken, Gemini Surpass Binance? Bloomberg Indicates One Reason

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Mon, 07/12/2021 - 13:24
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Vladislav Sopov
What is better for major crypto exchange: restricting U.S. customers or seeking 100% compliance?
How Can Coinbase, Kraken, Gemini Surpass Binance? Bloomberg Indicates One Reason
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Bloomberg Crypto compares two approaches to regulatory compliance in the U.S. Is it worth it to try to meet all of the requirements of the draconian regulation?

Does crypto need rules?

According to the article, the Gemini exchange is a flagship firm of the "maximum compliance" approach to doing business in crypto. This stretagy was emphasized even by the platform's ad slogans: "Finally, a regulated place to buy, sell and store crypto," "Crypto needs rules" and so on.

The same strategy is shared by other U.S.-focused giants such as Coinbase, Kraken and Bittrex. At the same time, Binance (BNB), "with no clear headquarters and a mysterious structure," is still an undisputed leader when it comes to trading volume.

As displayed  by Bloomberg, Binance, OKEx and Huobi, three exchanges that blacklist American customers are still dominating the segment of centralized exchanges.

Meanwhile, amidst regulatory scrutiny, Binance (BNB) constantly advances compliance, due diligence and anti-money-laundering mechanisms.

DeFi: The most dangerous rival

While choosing a regulatory compliance strategy is not an easy choice to make, there are always some options for centralized crypto exchanges.

Bloomberg stresses that this or that platform can restrain from listing uncertain assets or from experiments with red-hot segments of sophisticated crypto-based products (options, futures, etc.).

At the same time, decentralized financial protocols (DeFis) that need no regulation—as all operations are executed on-chain—evolved into massive competitors for both "compliant" and "non-compliant" centralized actors.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)