Kaiko: Binance's market dominance may pose systemic risks

According to DLnews, Kaiko's latest report shows that liquidity in the cryptocurrency market is overly concentrated on a few platforms like Binance, posing significant structural, operational, and legal risks. The report warns that although Binance is the largest exchange globally (with a spot trading volume of $15.3 billion and $27 billion in derivatives open interest), the platform is not formally regulated, has been convicted in the U.S. for inadequate anti-money laundering practices, and does not hold an EU MiCA license.

The cryptocurrency market crash in October led to $19 billion in futures positions being liquidated, with Binance experiencing price deviations and account access issues. Kaiko researchers pointed out that if Binance were to face operational, legal, or technical shocks, it could trigger severe volatility across the entire market.