The world’s largest cryptocurrency trading platform, Binance, has faced regulatory upheaval over the past week as jurisdictions clamped down on the use of unauthorized exchanges and warned citizens against accessing them. For Binance, adopting the moniker of “global exchange” has done very little to appease regulators that require specific licenses to offer financial services to their citizens.
Below is a brief recap of recent regulatory actions surrounding Binance.
On June 25, Japan’s Financial Services Agency, or FSA, accused Binance of operating in the country without proper registration – potentially setting the stage for a protracted legal battle with regulators. That’s because, unlike other jurisdictions, Japan has carved out specific registration and operating rules for cryptocurrency exchanges since at least 2018. Rather than comply with the directives, Binance decided to move its operations to Malta in 2018.
The FSA’s warning isn’t limited to Binance, either. In May of this year, the regulator warned derivatives exchange Bybit that it was in violation of registration rules.
Around the same time that Japan’s FSA issued its warning, Binance announced it would cease all operations in the Canadian province of Ontario after the provincial securities regulator introduced sweeping new measures targeting cryptocurrency exchanges.
On Apr. 19, the Ontario Securities Commission, or OSC, introduced new prospectus and registration requirements for crypto exchanges. Using that as a benchmark, the OSC singled out two crypto exchanges – Bybit and Kucoin – for allegedly “flouting” Canadian securities laws. Rather than comply with the new edicts, Binance decided to exit the market entirely, giving users until the end of the year to liquidate and close their accounts.
Binance was in the headlines again on Sunday after the United Kingdom’s Financial Conduct Authority, or FCA, ordered the exchange to halt all “regulated activity” in the country. This was interpreted by many as a blanket ban on using Binance to buy and sell cryptocurrencies in the U.K. In the meantime, transactions in the local pound Sterling currency have reportedly been blocked, according to users.
Binance asserts that the FCA notice pertains to Binance Markets Limited, which is a separate legal entity acquired by the firm in May 2020. As such, it “does not offer any products or services via the Binance.com website,” the company said.
We are aware of recent reports about an FCA UK notice in relation to Binance Markets Limited (BML).
We are aware of recent reports about an FCA UK notice in relation to Binance Markets Limited (BML).
BML is a separate legal entity and does not offer any products or services via the https://t.co/QILSkzx7ac website. (1/4)
— Binance (@binance) June 27, 2021
Nevertheless, from June 30 onward Binance must notify U.K. users of the FCA’s restrictions on its website and mobile apps.
In April of this year, Germany’s Financial Supervisory Authority, or BaFin, warned Binance that it could be fined up to $6 million, or 5 million euros, for offering security-tracking tokens without an investor prospectus. Specifically, BaFin raised issues with digital tokens that track blue-chip stocks like Microsoft, Apple and Tesla. According to the Financial Times, Binance told the regulator that its digital stock tokens are not securities because they are purchased through a third-party broker and cannot be transferred to other exchanges.
Binance operates in the United States through a dedicated trading desk called Binance.US, but it too has faced scrutiny in recent months. In May of this year, it was reported by Bloomberg that Binance is under investigation by the Justice Department and Internal Revenue Service in a joint money-laundering and tax evasion probe.
Changpeng Zhao, Binance’s CEO, refuted the title of the report by drawing attention to the fact that Binance cooperated with U.S. law enforcement agencies to “fight bad players
The "news" title is bad. Article itself isn't so bad actually (but who reads). It described how @binance collaborated with law enforcement agencies to fight bad players, but somehow made it look like a bad thing… 🤔 Anyways. Back to work.
— CZ 🔶 Binance (@cz_binance) May 13, 2021
Binance to Support the Incoming Polkadot Parachain Slot Auction
- Binance exchange will support the Polkadot (DOT) parachain slot auction.
- The company plans to start the event in November, this year.
- Doing this will help Polkadot achieve its ecosystem development.
Amid the waves blowing around the incoming Polkadot (DOT) parachain slot auction, Binance exchange has also announced that they are ever-ready to support the Polkadot’s parachain event.
With this synergy, Binance emphasized that it will soon start its Polkadot parachain slot auction program mainly in November 2021. Additionally, the month set to begin the event by the Binance team moves in line with the proposed Polkadot parachain slot auction date.
Meanwhile, Binance didn’t officially give the exact day and time that it will start the event. At the moment, the only news we have is that the team aims to start the parachain event in November.
To clarify, Binance intends to do its part and what it can to help influence Polkadot towards achieving its ecosystem development milestone. In turn, doing this will also push up the growth and adoption of the Polkadot parachain slot project to the mainstream.
Also, for further info about the event, the Binance team noted that they will keep their eyes on it and provide the community with more updates.
Until then, the team assured that the community should expect a separate announcement in no time and more details than what they have disclosed now. In addition, Binance advised that the community should stay tuned as they are bringing more initiatives ahead.
Binance Angels Helped a Crypto User Recover Nearly $100,000
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Binance Angles, volunteers who support the leading cryptocurrency exchange’s community and projects, have helped a cryptocurrency user recover nearly $100,000 in the USDC stablecoin after the user sent the funds to the wrong address.
According to a post Binance published the user, identified only as Damien, sent 98,000 USDC on the Binance Smart Chain to the USDC contract address instead of to his own address on the exchange, leading to a loss of funds.
After the user conducted thorough research to find out what could be done, he went into despair and contacted Binance’s French-speaking community on Telegram. The community of over 23,000 is moderated by Binance Angels, who informed Damien there was a chance: Binance’s BNB Pioneer Burn Program.
The BNB Pioneer Burn Program
Binance’s pioneer burn program is a new initiative meant to help users restore funds they have lost due to honest errors on the Binance Smart Chain. Under the program, Binance covers the lost funds of eligible users by using money that was meant to be used on Binance’s quarterly token burns.
Damien was fortunate enough to see his case meet all of the criteria of the Pioneer Burn Program, meaning that in just 24 hours after his mistake was made, he received the 98,000 USDC back from the cryptocurrency exchange.
Binance’s blog post details that to be eligible for the program, users’ lost tokens must either be “BNB, “wrapped” tokens (e.g. WBNB), or “pegged” tokens (e.g. BTCB) supported via the Binance “Token Canal” Project,” and have to have been transferred to the BEP20 contract addresses verified on BSCScan so the loss can be publicly justified and recognized as moving the asset out of circulation.
The loss also has to be above $1,000 in value, but smaller than the amount of BNB that is projected to be burned during the upcoming quarter.
Binance Angels, it’s worth noting, are community volunteers who share their knowledge of the cryptocurrency space and of the Binance ecosystem with its community, and help users navigate everything that’s out there.
These volunteers don’t just help users, but also help translate and proofread content, manage both online and offline communities, and provide feedback on Binance’s features to help the exchange improve.
They are rewarded through exclusive invites to Binance events as either VIP guests or organizers, through meeting with the Binance team, and by attending behind-the-scenes meetings with them. Binance Angels also received limited-edition swag, and exclusive gifts.
Binance Coin Price Analysis: BNB is bullish for the next 24 hours
- Binance Coin price analysis is bullish today.
- BNB/USD broke above $460 after slight retracement yesterday.
- Closest resistance at $510.
The price of Binance Coin is presently bullish, as previous resistance at $460 was breached today, pushing BNB higher. As a result, we expect BNB/USD to rise further over the next 24 hours.
Binance Coin price movement in the last 24 hours: Binance Coin breaks $460, continue higher in the next 24 hours.
The price of Binance Coin is presently bullish, as a recovery in its price was seen after yesterday’s retracement, pushing the price back to higher prices. As a result, we expect BNB/USD to rise further over the next 24 hours. The market closed today at $470 for a gain of $9 in the last 24 hours.
A look at BNB/USD in the 4H chart shows that yesterday, the Binance Coin price dropped to a low of $450 and went into consolidation. Recovery was seen soon after, pushing the price higher and breaking above resistance at $460.
This week, however, the price broke above $460 and the 200 SMA (red). The break was supported by a rise in trading volume from yesterday’s low of $124 million to today’s high of $163 million. This has resulted in BNB/USD rising by close to 10% today, and we expect it to rise further over the next 24 hours.
The nearest resistance is seen at $510 (the price of Binance Coin on August 23), while support is found at $450. Over the day, we predict a break of this level will take place, pushing the price to $500.
BNB/USD 4-hour chart: BNB shows bullish movement
On the 4-hour chart, we can see bullish momentum still strong, indicating we will see further upside today.
Binance Coin’s price action has shown considerable bullish momentum over the last several weeks. On October 1, BNB/USD rose to a new high of $450.
Binance Coin (BNB) recovered Monday, establishing a higher low of $395 before spiking Tuesday again. The previous swing high was broken, allowing BNB to reach the next resistance at $460.
Binance Coin fell to test the $440 prior swing high barrier as support, with a little reaction following. Any additional selling yesterday was not apparent, so BNB/USD went back on a bullish trend over the previous 24 hours.
Binance Coin Price Analysis: Conclusion and
The market of Binance Coin today is showing promise of further gains in the next 24 hours despite poor sentiment across cryptocurrencies. Several new records for cryptocurrency prices have the nearest been set over the past few weeks, but now the market is slowing down, with trading volumes dropping dramatically. This is likely to affect Binance Coin prices soon have the as well.