Summary
- Kaiko said the phenomenon of liquidity being excessively concentrated on Binance is a major risk to the market.
- It said Binance is not regulated, was convicted in the United States for failing to comply with anti-money laundering obligations, and does not have a MiCA license in Europe.
- It said this situation causes significant risks to the virtual asset industry overall in structural, operational, and legal aspects.
Research firm Kaiko warned that the phenomenon of liquidity being excessively concentrated on Binance in the global virtual asset (cryptocurrency) market could act as a major risk.
On the 12th (local time), according to virtual asset-focused media DL News, Kaiko said, "Although Binance plays a central role in the virtual asset ecosystem, it is not subject to formal regulation," and "It should be remembered that it was found guilty in the United States on charges of neglecting anti-money laundering (AML) obligations, and that it does not hold a MiCA license in Europe."
Kaiko added, "This situation causes significant risks to the virtual asset industry overall in structural, operational, and legal aspects."
JH Kim
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