The European Supervisory Authority warns of the risks resulting from the dominance of cryptocurrency exchanges

The European Securities and Markets Authority (ESMA) has expressed concerns about the high concentration of cryptocurrency trading on a few exchanges, highlighting in particular Binance's market dominance. Binance is responsible for roughly half of trading activity, which poses risks to the sector if the platform goes down or has technical issues

The European Securities and Markets Authority's analysis indicated that around 90% of cryptocurrency trades are processed by just ten exchanges, with Binance alone facilitating more than 50% of the trading volume. The authority noted that although this focus may provide efficiency due to economies of scale, it also brings significant risks to the cryptocurrency ecosystem in the event that one of the major assets or exchanges experiences problems.