At the time of writing, Binance Coin (BNB) had declined about 6% in the previous week, while other major cryptocurrencies had risen. Binance Coin (BNB) is the native coin of Binance, a cryptocurrency exchange, and it’s just a matter of time before the growing worldwide regulatory crackdown has an impact on BNB’s market. The crypto exchange’s regulatory issues are growing at an alarming rate, and the price of BNB coin may fall as regulatory barriers climb.
Nations and institutions that do not support Binance services in their own regions are on the verge of reaching the apex. Binance has been shut down in seven countries due to the exchange’s inability to comply with the countries’ digital currency legislation.
The Financial Services Agency of Japan was the first to crack down on Binance (FSA). The Financial Services Authority (FSA) has issued a warning against the exchange of non-compliance, claiming that Binance has been operating in the country without registration under the new criteria and could face criminal charges. Singapore was the latest country to probe Binance, announcing an inspection of Binance Holdings Ltd.’s operations in the country. Binance had to leave another country, Canada.
In light of several rumors that Canada is placing stringent limitations on crypto trade and exchange, the abrupt removal was unsurprising. Thailand has also joined the anti-Binance club, with the Securities and Exchange Commission (SEC) initiating a criminal probe into Binance.
The Financial Conduct Authority of the United Kingdom (FCA) is campaigning against Binance, telling investors and businesses to avoid the exchange since it is not permitted to operate in the country. In addition to the UK’s anti-Binance position, the Cayman Islands Monetary Authority (CIMA) has launched an investigation following reports of an unlawful Binance headquarters in the Cayman Islands. Italy has lately joined the regulatory attack on Binance, accusing the company of providing prohibited investing services in the country.
Users that are dissatisfied
The Binance crackdown affects more than just governments and institutions. Over 700 traders have joined forces to sue Binance over a technical fault during a sharp drop. Binance halted in May, when cryptocurrencies began to plummet, leaving its users stranded in the middle of a crypto apocalypse. Hundreds of thousands of dealers lost their money after the exchange halted for almost an hour.
FTX is a Potential Threat Due to Rising Competition While Binance is mired in regulatory and compliance issues, FTX recently received funds at the highest crypto valuation ever. FTX recently bought back its shares in Binance, according to FTX founder Bankman-Fried.
“Given the importance that our companies play in the space, I believe it is only natural. It may also provide us with additional flexibility in the future.”
This was a contentious topic in the crypto world, and FTX’s exit from Binance could be a strategy to avoid regulatory difficulties and prepare to overtake Binance as the largest exchange by volume.