Latin American Crypto: In response to the recent regulatory actions taken by the US Securities and Exchange Commission (SEC) against two major cryptocurrency exchanges, Binance and Coinbase, crypto holders in Latin America have shown a significant surge in creating new accounts on Bitget, a popular crypto derivatives exchange.
The SEC has filed lawsuits against Binance, the world’s largest cryptocurrency exchange, and Coinbase, the largest crypto exchange based in the United States, over the past few days. The charges brought against Binance and its US-based affiliates range from allegations of operating as an unregistered exchange to offering unregistered securities to customers. The commission has also filed similar charges against Coinbase.
As the regulator focuses its attention on these two prominent US exchanges, crypto holders in Latin America are actively seeking alternatives and turning their attention to platforms like Bitget. Between June 6 and 9, the number of new users from the region has risen by an impressive 43% compared to daily averages. Brazil and Argentina, with their sizable populations, have led the market share growth, according to a Bitget spokesperson interviewed by Cointelegraph.
Bitget has reported a substantial increase in new clients from Brazil, witnessing a growth of 54%, along with a staggering 208% surge in total deposits. In Argentina, the customer base has grown by 33%, and total deposited funds have seen an 87% increase. Overall, Bitget’s total deposits in the region have risen by 134% in recent days, according to data provided by the exchange.
Gracy Chen, the managing director of Bitget, shared her perspective on the situation, stating, “The crypto industry is still very new and has experienced tremendous growth in recent years. Favorable policies are being implemented in places like Hong Kong, Dubai, Singapore, and new opportunities are emerging. So, we are convinced that things will settle down over time, with the industry consolidating itself among the strongest ones in the modern economy.”
Significant losses have been incurred by crypto billionaires as a result of the SEC’s crackdown on Binance and Coinbase. Changpeng Zhao, widely known as CZ and the CEO of Binance, witnessed a decrease of approximately $1.4 billion in his net worth, bringing it down to $26 billion. Similarly, Brian Armstrong, the CEO of Coinbase, saw his net worth drop by $361 million to $2.2 billion, according to Bloomberg data.
Established in 2018, Bitget boasts approximately 8 million registered users and handles a daily trading volume of around USDT 10 billion, as per the exchange’s data. In October 2022, Bitget signed a partnership agreement with Argentine soccer superstar Lionel Messi, who now serves as the brand’s ambassador, aiming to enhance its popularity among Latin American users.
In conclusion, the recent regulatory actions taken by the SEC against Binance and Coinbase have prompted a significant response from crypto holders in Latin America. Seeking alternative platforms, many have turned to Bitget, a crypto derivatives exchange that has experienced a notable increase in new users and deposits from the region. As the crypto industry continues to evolve and favorable policies are implemented worldwide, it is expected that the industry will further consolidate its position as one of the strongest sectors in the modern economy.