As the Securities and Exchange Commission (SEC) launched its campaign against exchanges in the USA, investors reacted with force. Half of the Bitcoins (BTC) stored on these platforms were transferred outside US borders, creating a mass exodus.
A report by CryptoQuant reveals the alarming figures of this sudden migration within the crypto ecosystem. Users, seeking to protect themselves from SEC and Gary Gensler initiatives, have transferred their precious Bitcoins to exchanges outside the USA.
BTC reserves on US exchanges have been at an all-time low since 2017. This situation has been preceded by radical decisions. Binance.US recently suspended withdrawals, and many other platforms simply chose to cease operations in the US.
This phenomenon has led to a decentralization of trading volume in the crypto market. According to the report, international exchanges now experience four times the trading volume of US-based platforms.
4 billion in cryptocurrency transfers
According to CoinDesk, cryptocurrencies transferred from Binance, Binance.US and Coinbase represent a colossal $4 billion. It’s important to remember that the SEC has played a key role in the panic currently shaking the markets, with its initiatives against these three entities in particular.
Binance.US even urged its users to withdraw their funds from the platform, denouncing the SEC’s “extremely aggressive and intimidating tactics“. As a direct consequence of this situation, Binance’s native cryptocurrency, BNB, has recorded a -25% drop over the past week.
This unprecedented resistance from US investors sends a clear message to the SEC: they are refusing to bow to regulatory pressure and are seeking refuge in more favorable jurisdictions. The repercussions of this massive Bitcoin migration will undoubtedly redefine the global balance of the crypto market in the months to come.