Thai cryptocurrency pundits are recommending investors withdraw digital assets from Binance amid a run on the world's largest crypto exchange, moving their money to a safer crypto exchange in Thailand regulated by the Securities and Exchange Commission (SEC).
As much as US$1.9 billion worth of cryptocurrencies were withdrawn from Binance in the last 24 hours, the largest amount since June 13, blockchain data company Nansen reported on Tuesday.
On the same day, Binance temporarily suspended the withdrawal of USDC stablecoin, but later announced withdrawals had resumed.
More investors are deserting Binance because of growing uncertainty over the exchange's reserve fund reporting.
Meanwhile, users and regulators are keeping a close eye on crypto exchanges such as Binance after its competitor FTX went bankrupt, and FTX's platform chief Sam Bankman-Fried was arrested by police on Dec 13.
Binance tried to reassure investors last week by posting a reserves report prepared by audit firm Mazars on its Twitter account. The report showed that Binance held more bitcoin than customers deposited on Nov 22.
Piriya Sambandaraksa, managing director of Chaloke Dot Com, said Binance has been frequently questioned over its liquidity and reserves over the past week after Binance chief executive Changpeng Zhao tweeted an attack on Mr Bankman-Fried, with investors assuming Mr Zhao was trying to offer proof of reserves to cover up something.
"That caused people to panic and start withdrawing assets. Once customer withdrawals reach a certain point, it might cause the company to go bankrupt," said Mr Piriya.
"It is safer to deposit money with Thai crypto exchanges during this period."
The SEC regulates and instructs exchanges to separate 90% of client assets in cold wallets and 10% in hot wallets.
"When the unease passes and Binance can prove that its financial status remains strong, investors can return," he said.
