Binance, a leading cryptocurrency exchange, has tightened its listing policy, resulting in a 21% decline in the number of listed trading instruments in 2023, according to a report from Kaiko.
As revealed by the Diving Into DEXs report, Binance has adopted an accelerated approach to delist entities rapidly. This strategic shift follows the resolution of a $4.3 billion case involving the exchange’s founder and former CEO, Changpeng Zhao, with U.S. regulators. The case involved allegations of operating an unlicensed exchange, among other issues.
While Binance is not the only exchange streamlining its listing offerings in 2023, with Coinbase and OKX also delisting certain instruments, Kaiko analysts noted that U.S.-based crypto exchange Kraken slightly increased its support for cryptocurrencies during the same period.
In a mid-October 2023 report, Kaiko disclosed that over 3,445 tokens or trading pairs had been delisted or rendered inactive on major platforms. This marked a 15% increase in delisted instruments compared to the entire year of 2022. Kaiko analysts estimated that Coinbase removed a total of 80 trading pairs by October 2023, bringing the platform’s total delisted instruments for the year to 176.
In early December 2023, Binance’s newly-appointed CEO, Richard Teng, acknowledged in an interview with CoinDesk that the exchange’s compliance control at launch was “inadequate,” and he admitted that “mistakes were made.” These comments came in response to the U.S. Department of Justice’s assertion that Binance’s staff “knew that the company’s anti-money laundering procedures were inadequate and would attract criminals to the platform.”
