Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
A significant development occurred on 29 August within the ongoing legal battle between Binance [BNB] and the Security and Exchange Commission (SEC). The SEC introduced a new element to the case with its latest action.
Notably, a recent court filing revealed that the SEC submitted a motion under seal. This allowed the SEC to present sensitive or private information without disclosing the details. The filing indicated the motion included an extensive collection of over 35 exhibits.
Binance – the largest crypto exchange by trade volume – seems to be losing out with the mounting regulatory scrutiny from Western regulators. In the latest development, Mastercard, one of the leading payment service providers, announced it would be parting ways from the exchange.
Two major developments also took place last month that reflect the currents of the ongoing tussle Binance is engaged in across countries.
In Nigeria, a leading trade association urged the national government to ban the activities of Binance. The Nigerian regulator has already banned the exchange in the country.
Meanwhile, the exchange secured a license to operate in El Salvador. Binance is the first fully licensed crypto exchange in the country.
While we see Binance getting a warm reception in some jurisdictions, it is facing scrutiny in others. It all began when the U.S. Securities and Exchange Commission (SEC) sued the exchange in early June for allegedly violating federal securities laws.
TradingView shows a surge in aggregated sell orders of about 125,000 BNB worth $37 million just before the U.S. SEC’s crackdown on the exchange. Speculations are rife around a possible case of insider trading.
In another development, the U.S. Department of Justice (DOJ) is reportedly contemplating the possibility of bringing fraud charges against cryptocurrency exchange Binance. Officials at the DoJ are concerned, Binance could trigger a situation similar to what FTX experienced in 2022. As a result, they were exploring alternatives such as imposing fines or establishing non-prosecution agreements with Binance, aiming to mitigate potential harm to consumers.
Earlier, BNB’s price rose barely 7% after Ripple [XRP] secured a partial victory in its legal battle with the SEC on 13 July. But it hasn’t led to a significant price rally.
The U.S. District Court of the Southern District of New York ruled in its judgement that the sale of Ripple’s XRP tokens on crypto exchanges and though programmatic sales did not constitute investment contracts; hence, it is not a security in this case. But the court also ruled that the institutional sale of the XRP tokens violated federal securities laws.
The crypto industry has lapped up the judgement instantly, generating a price rally across tokens for some time.
Binance has been subjected to relentless regulatory scrutiny in 2023, raising grave concerns about the survival of one of the largest crypto companies in the world.
The world’s leading crypto exchange is also under regulatory scrutiny across several countries in Europe besides the U.S.
Germany’s financial regulator has rejected Binance’s request for a crypto custody license. The exchange has withdrawn its request for regulatory approval in Austria. It has also given up its registration with regulatory bodies in the United Kingdom and Cyprus.
The exchange has opted to quit the Netherlands after failing to register there. Belgium has also ordered the exchange to suspend its operations in the country. The French authorities are also reportedly investigating the exchange on “aggravated money laundering” charges.
In March, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit accusing the exchange and its founder Changpeng Zhao “CZ” of violating local compliance rules to expand its business. The exchange has decided to seek dismissal of CFTC’s complaint.
However, the recent SEC-Ripple court judgement has led many to believe it will have a positive impact on Binance’s case also.
The future course for Binance and its native token, Binance Coin, is shrouded in uncertainty. And, most of the investors and analysts in the space would be busy understanding the dynamics of making informed decisions going forward. We at AMB Crypto, tried to get some help from an unlikely ally, ChatGPT
Read Price Prediction for Binance Coin [BNB] 2023-24
ChatGPT — the AI sensation
Ever since it burst onto the scene, ChatGPT has become a rage, revolutionizing the way humans interact with AI. People have flooded the AI-powered chatbot with a plethora of use cases to get assistance…
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