After a few scares, Binance ’s offensive moves start. Regulators around the world surrounded the biggest cryptocurrency exchange by market capitalization. Their lawyers were working overtime. There were pitfalls all around. A few months later, Binance is the one setting the rules. They’re the ones inviting the regulators to the castle. They’re trying to set the tone and define what a fully compliant cryptocurrency exchange is.
The campaign started with Binance’s first traditional media ad in the company’s history. A full-page in the Financial Times and a website to complement it. “Crypto belongs to all of us. But there’s still work to be done if we want this breakthrough innovation to become part of our daily lives. Like seat belts in a car, a more regulated crypto market provides greater protections for everyday users,” says the ad’s copy. Exactly what the regulators want to hear.
What Did Binance Say To The Press?
The company’s CEO, Changpeng Zhao AKA CZ, spoke to Bloomberg to spread the news. About the aim of their campaign, he told them:
“We have been communicating with many regulators around the world. As a new industry, we like to share what we think is important for users.
We want to put this out there so everybody understands from our position what’s important. We already shared this — not in this format — with different regulators, and we want the users to know as well. We have a much more detailed framework that we share with regulators directly.”
He also tells them that the regulators were skeptical of Binance at first, but that in-person meetings have helped win them over. “When people see me in person, they say, “look, CZ is very reasonable, very calm, not a crazy guy.” In a related topic, when they ask him if the users leave as they tighten compliance, CZ answered “There is a small group of people who do not like to do know-your-customer rules, get verified etc. It’s a free market. There are other platforms they could use.” And then claims, “We only lose 3% of the users.”
BNB price chart on FTX | Source: BNB/USD on TradingView.com
Highlights From The “10 Fundamental Rights For Crypto Users”
Since the focus of this article is regulation and compliance, let’s focus on the three rights that touch the subject. For those interested in the rest of the text, here’s the website. Binance basically promises financial services, security, and privacy for everyone.
“II. Industry participants have a responsibility to work with regulators and policymakers to shape new standards for crypto assets. Smart regulation encourages innovation and helps keep users safe.”
Binance pledges to work with regulators and invites them to the castle. Does the part about “smart regulation” contain a light threat? If it does, it leaves space for plausible deniability.
“III. Responsible crypto platforms have an obligation to protect users from bad actors and implement Know Your Customer (KYC) processes to prevent financial crimes.”
Once again, Binance promises to implement KYC to all its users. The platform used to let unverified accounts transact small amounts. As soon as the regulators started knocking at their door, Binance announced KYC for everyone. And here, they double down on the policy.
“VII. Regulation and innovation are not mutually exclusive. Crypto users deserve safe access to emerging technologies and practices, including NFTs, stablecoins, staking, yield-farming, and more.”
Binance is willing to work with regulators, but they also have to play ball and let them work. The company’s tactic so far is to aggressively pursue every and all innovations in the cryptocurrency ecosystem. And they want to keep doing it. Or else.
The last two “fundamental rights” also deal with regulations, but in a less direct way. They are also pretty obvious. Number nine says “Marketplaces that offer derivative instruments should be subject to the appropriate regulations.” Number ten, that “Crypto regulation is inevitable,” and users have the right to voice their concerns.
All in all, it’s a pretty empty text that doesn’t say much. Perfect for regulators. CZ is a genius and Binance’s future looks bright.
Binance resumes DOGE withdrawals days after Elon Musk’s comments
The exchange officially announced on Monday that it had restarted DOGE withdrawals after experiencing a major issue where Binance users were unable to withdraw Dogecoin for 17 days.
Additionally, 1,634 users on Binance were sent old transactions due to a conflict of several DOGE wallet versions. This happened due to a “combination of unlikely factors” and ultimately affected only Binance. The exchange wrote:
“In short, if 1) your platform had listed DOGE all the way back in 2019, at v1.14.0 2) had transactions stuck in the wallet 3) had upgraded the wallet to v1.14.2 4) AND then updated to v1.14.5 — you can have an issue.”
“Unfortunately for Binance, we had inadvertently threaded the needle with all of the above parameters, which led to the coins being re-sent and requiring a new wallet needed to be built,” the announcement reads.
Binance emphasized that “no single entity was at fault” as neither Binance nor the DOGE Network had prior knowledge of the issue.
The fix came after Tesla CEO Elon Musk brought up the issue on Twitter on Tuesday, arguing that Binance’s DOGE withdrawals problem was “shady.” Binance CEO Changpeng Zhao stated right away that the problem was related to the latest DOGE wallet upgrade.
Appreciate it.🙏 I over reacted a bit due to the word “shady”. The KYC part is tedious, and we can’t service US users. You could try https://t.co/hSHrrlWIfF though. Still a tedious sign up process, but have #Doge.🐕 We are working with their team to fix the issue ASAP. 🙏— CZ 🔶 Binance (@cz_binance) November 23, 2021
Dogecoin is a meme-based cryptocurrency that has been increasingly popular since Musk started actively promoting DOGE on Twitter in 2020. At the time of writing, DOGE is the 10th-largest cryptocurrency with a market capitalization of $27 billion. The price of DOGE has tumbled recently, with Dogecoin dropping more than 22% over the past 14 days, according to CoinGecko.
Binance Unveils Inside Details of the Dogecoin (DOGE) Incident
The world’s leading cryptocurrency exchange, Binance, has opened up about the entire fiasco that was endured by Dogecoin Core maintainers and the company during the wallet upgrade. In its blog post titled, “The Inside Story on DOGE withdrawals,” Binance revealed what actually transpired and how no one was at fault.
Dogecoin (DOGE) withdrawals Inside Story
It all began as, what Binance describes, a “straight-forward” upgrade. However, users were not able to withdraw their DOGE tokes for 17 days straight. To top that, 1,634 customers were sent old transactions. While detailing facts and clarifying that no shade was intended, the exchange’s post said several unlikely factors resulted in an unforeseen issue that subsequently affected only Binance.
It explained that the “technical issue” led to old transactions being sent back to many users due to a unique wallet arrangement for DOGE.
“In short, if 1) your platform had listed DOGE all the way back in 2019, at v1.14.0 2) had transactions stuck in the wallet 3) had upgraded the wallet to v1.14.2 4)
AND then updated to v1.14.5 — you can have an issue. Unfortunately for Binance, we had inadvertently threaded the needle with all of the above parameters, which led to the coins being re-sent and requiring a new wallet needed to be built.”
According to Binance, the event was nothing short of an unlikely and unfortunate coincidence for all the parties involved. While referring to Musk’s shady remark, the blog post stated that there was no way Dogecoin Core maintainers and Binance would have been able to “plan” this. After “silently” opening withdrawals on November 27th, the platform fully opened the withdrawals starting today again.
Elon Musk is a powerful ally of Dogecoin (DOGE), the OG meme coin. Hence, his comments spurred debates and jibs from Binance’s rivals. Huobi, for one, did not hold back. In its blog post last week, the exchange said that Binance’s move of arbitrarily freezing user accounts damaged the user trust. It also stated that this incident would likely push customers to decentralized exchanges (DEXs).
Huobi blamed Binance for the delay in transactions and the loss of hundreds of millions of dollars worth of Dogecoin.
Binance Coin Price Analysis: BNB sets higher high at $626, another swift retracement to follow?
- Binance Coin price analysis is bearish today.
- BNB/USD saw a strong upsurge towards $630 resistance today.
- Further upside is currently rejected.
Binance Coin price analysis is bearish today as we expect another retracement to follow after a higher high set today. Likely BNB/USD is not yet ready to reach further upside and another retracement that sets a higher low is needed.
The market has seen bullish momentum return overall. Bitcoin gained 4.81 percent, while Ethereum 5.78 percent. Meanwhile, Binance Coin (BNB) follows with a gain of 3.71 percent.
Binance Coin price movement in the last 24 hours: Binance Coin sets higher high after strong bullish momentum overnight
BNB/USD traded in a range of $574.98 – $624.65, indicating substantial volatility over the last 24 hours. Trading volume has declined by just 1.3 percent, totaling $2.57 billion, while the total market cap trades around $102.67 billion, ranking the coin in 3rd place.
BNB/USD 4-hour chart: Rejects further upside at $626,
On the 4-hour chart, we can see the Ripple price action currently looking to reverse again as further upside is rejected after a strong rally earlier today.
Binance Coin price has seen a strong recovery over the past weeks after a strong drop from the $660 previous highs resulted in a loss of over 20 percent to the $510 mark.
From there, BNB/USD quickly reacted higher on the 19th of October, reaching the $600 mark. After a slight pause later in the week, BNB continued higher until the $660 mark was almost reached again by the 26th of October.
Since then, we have seen a strong spike lower set another higher low at $570. The Binance Coin price has since set further local higher low and high, indicating bullish momentum slowly preparing for another attempt to break the all-time high resistance around $660-$670.
Binance Coin Price Analysis: Conclusion
Binance Coin price analysis is bearish for today as we expect another retracement that sets a higher low to follow over the next 24 hours. Therefore, BNB/USD has set another higher high, with more preparation needed before further upside can be tested.
While waiting for Binance Coin to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.