Kaiko: Concentration of liquidity on Binance poses significant risk

Research firm Kaiko has warned that the concentration of liquidity on the Binance exchange poses a significant risk to the cryptocurrency market, DL News reported. Kaiko explained that while Binance plays a key role in the crypto ecosystem, it is not officially regulated. The firm also noted that the exchange was convicted in the U.S. for neglecting anti-money laundering obligations and does not hold a Markets in Crypto-Assets (MiCA) license in Europe. According to Kaiko, these factors create substantial structural, operational, and legal risks for the crypto industry.