In the wake of legal actions taken against major cryptocurrency exchanges Binance and Coinbase by United States regulators, Bitget, a prominent crypto exchange, has experienced a significant increase in new accounts from Latin America. This surge in user sign-ups has been particularly notable in Brazil and Argentina, leading to substantial market share growth for Bitget in the region.
Bitget registered 87% of new users in the last few days
According to Bitget, the number of new clients in Brazil skyrocketed by 54%, accompanied by a remarkable 208% surge in total deposits. Similarly, in Argentina, the customer base witnessed a growth of 33%, while funds deposited expanded by an impressive 87%. Bitget also operates in other Latin American countries, including Venezuela, Colombia, and Mexico. Over the past few days, the exchange’s total deposits in the region rose by a staggering 134%.
Bitget, with a global clientele of over 8 million across 100 countries, did not disclose the specific number of users in Latin America. However, the increased interest in the platform from the region can be attributed to recent developments in the United States involving Binance and Coinbase.
On June 5, Binance faced a lawsuit from the U.S. Securities and Exchange Commission (SEC), which included allegations such as the unauthorized sale and offer of securities, failure to register as an exchange or broker, and commingling of funds. Consequently, Binance experienced net outflows of $3.128 billion in the past seven days, as reported by DefiLlama. In contrast, Bitget witnessed a surge of $14.8 million in deposits during the same period.
Latin American adoption drives market shares upwards
Coinbase, another prominent crypto exchange, was also targeted by U.S. regulators and sued on June 6. The allegations against Coinbase included offering unregistered securities and operating as an unregistered security broker since 2019. SEC Chair Gary Gensler accused the exchange of failing to provide customers with essential protections against fraud and manipulation, as well as neglecting to establish safeguards against conflicts of interest. In the past 24 hours, Coinbase’s trade volume experienced a notable increase of 113.06%, amounting to $1.5 billion.
Both Binance and Coinbase have shown interest in expanding their operations in Latin America. Brazil has been one of Binance’s top global markets, and its local partner recently obtained a payment provider license in the country. Similarly, Coinbase has been establishing partnerships with local payment providers since March, facilitating crypto purchases and enabling deposits and withdrawals in the local currency.
The recent developments in the United States have had a significant impact on the cryptocurrency industry, driving users from Binance and Coinbase to seek alternatives such as Bitget. Bitget’s growth in Latin America can also be attributed to favorable policies and emerging opportunities in regions like Hong Kong, Dubai, and Singapore. Despite the challenges faced by the industry, Bitget’s Managing Director, Gracy Chen, remains optimistic about the future, foreseeing the crypto industry consolidating itself among the strongest sectors in the modern economy.
