EU Regulator Expresses Serious Concerns Over Concentration in Cryptocurrency Trading

LONDON (Reuters) – According to the European Union’s securities regulator, the significant dominance of Binance in cryptocurrency transactions—it commands over 50% of the market—poses a potential risk due to the possible effects a system breakdown or operational failure could have on the industry, an issue highlighted in a statement on Wednesday.

“Despite the potential benefits of such concentration in terms of efficiency and the potential for cost savings, the heavy reliance on a single major player or platform can lead to substantial risks if that entity experiences any significant issues,” the European Securities and Markets Authority (ESMA) indicated in its comprehensive assessment of the current market conditions.

(Reported by Huw Jones; Edit by Alex Richardson)