coinspress.com
Binance, a major cryptocurrency exchange, now permits larger traders to secure assets with independent banks like Sygnum Bank and FlowBank, as reported by the Financial Times.
This follows Binance’s November announcement of a pilot banking triparty agreement with an undisclosed third-party partner. Previously, traders were confined to keeping assets within the exchange or through Binance’s custody partner Ceffu.
The move responds to increased concerns about crypto exchange custody risks, prompted by FTX’s collapse in 2022 and Binance’s $4.3 billion settlement with U.S. authorities in November.
Binance faced legal challenges in 2023, settling with the Department of Justice, Department of the Treasury, and the Commodity Futures Trading Commission. Former CEO Changpeng Zhao stepped down, and regulatory issues in Europe persisted.
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This tumultuous year impacted Binance’s market share, dropping from over 70% to 44% post-settlement. Resilience was noted, with market share rebounding to 50% due to promotions and spot bitcoin ETF excitement.
However, The Block’s data indicates a continued decrease to around 46%, down from the peak of 71% in December 2022.