OKX Wins Big as Binance’s EU Exit Triggers $1B Exodus

OKX is reaping the rewards of a week-long aggressive marketing campaign, with the exchange recording seven-day inflows of over $300 million. The gains come on the heels of Binance exiting the EU after failing to obtain a MiCA license, triggering a mad dash for the exchange’s displaced users.

OKX scores $320 million in weekly inflows amid Binance’s woes

According to data from DefiLlama, OKX has gained over $300 million in weekly inflows amid an uptick in new European users. In the last 24 hours, the crypto exchange netted inflows of nearly $20 million while spot trading volumes topped $4 billion. 

On the flip side, Binance, the world’s largest crypto exchange, has also recorded outflows of $1.1 billion over the last seven days. Over the last day, DefiLlama’s data indicates a jarring $582 million in outflows for Binance as its

Previously, Binance notified EU users that it would restrict services in the region on July 1 after failing to obtain a MiCA license in Greece. According to the new MiCA rules, starting on July 1, crypto service providers in Europe have to obtain a license to operate in the region.

With Binance falling short of the requirement, OKX launched an aggressive marketing campaign to court displaced users. OKX is offering an 8% deposit bonus and a raft of user rewards to attract Binance’s customers, recording impressive levels of success amid rising inflows.

“OKX is MiCA-authorised, offering a single unified account with institutional-grade infrastructure and deep liquidity,” wrote the exchange in a post on X.

Meanwhile, Coinbase seized the opportunity to attract Binance’s EU customers, offering a 5% transfer bonus for users moving funds to the exchange before July 13. Both Coinbase and OKX hold MiCA licenses, with several crypto firms snagging regulatory approval ahead of the July 1 deadline.

OKX founder slams CZ over exit comments

OKX founder Star Xu has taken swipes at Binance founder Changpeng Zhao (CZ) for tagging the exchange’s exit as a “huge loss for Europe.” Xu countered that European users and regulators avoided a potential seismic liquidation event in the future by withholding a MiCA license from Binance.

“What huge loss? A loss for whom? What exactly did Europeans lose? Another October 11?” wrote Xu. 

The OKX founder previously criticized Binance’s attempt to obtain a MiCA license in Europe as “regulatory arbitrage,” poking holes at the exchange’s large compliance department. According to Binance’s own disclosures, its compliance division employs over 600 professionals, including former law enforcement and regulators. 

In 2022, Binance failed to gain clearance with the UK’s Financial Conduct Authority (FCA), leading to heavy restrictions for retail users. Despite failing to get a MiCA license, Binance has plans to throw its hat in the ring for another shot at regulatory approval.

Meanwhile, there are whispers of the global arm of Binance making an entry into the US, after CZ unveiled plans to “build” in the country. A presidential pardon and a soft stance from the White House are tailwinds for Binance, but the exchange will face stiff competition from US-based exchanges and tight regulatory scrutiny.

Source:: OKX Wins Big as Binance's EU Exit Triggers $1B Exodus