Binance, the world's largest crypto exchange by volume, has seen a significant drop in market share due to accusations of fraud by a U.S. regulator and the elimination of zero-fee trading for some trading pairs. Its market share relative to other exchanges has fallen to 54% from 70% in the past two weeks, the lowest sustained market share since August, according to data from research platform Kaiko. The U.S. Commodity Futures Trading Commission (CFTC) sued the exchange and founder Changpeng Zhao on March 27 for offering unregistered crypto derivatives products in the U.S. against federal law. The U.S. market is particularly fragile right now for remaining crypto exchanges due to increased regulatory scrutiny. In the U.S., Coinbase also saw its market share drop in Q1, while Binance.US picked up the slack, surging from 8% to 24%, according to Kaiko.

(By Lyllah Ledesma)