Binance: Reuters and CZ- shed light on allegations
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A new Reuters story was published on October 17, claiming that crypto exchange Binance has failed to contact regulators in the United Kingdom and the United States.
A Reuters article published earlier this year in June speculated that, following the US example, Binance was not doing enough to prevent crypto-related criminal activity and fraud.
Reuters allegations against Binance
As reported by Reuters, on March 11, 2020, Binance Chief Strategy Officer Zoe Wei proposed retroactively enforcing a service agreement covering a range of activities between Binance's UK subsidiary. and the company. Binance parent company in the Cayman Islands.
Following the implementation of new regulations on January 10, 2020, companies that existed before that date were removed from registration with the country's Financial Conduct Authority for a period of one year. This Reuters reported that Binance tried to take advantage of it.
Furthermore, in November 2018, it was reported that entrepreneur Harry Zhou, who has connections to Binance, proposed shifting the focus of Binance's enforcement efforts to a US entity.
According to the Reuters account, the idea for Binance came about because the company realized that traders in the region were still using the main platform after restrictions on US customers went into effect.
CZ denied the allegation
Binance CEO Changpeng Zhao (CZ) concurred with a blog post in response. CZ explained the company's regulatory environment and said that Binance's market capitalization has grown a lot in a short time. As for this, there is no rule book on how to do exactly when a company scales overnight.
The CEO also responded to media reports that the exchange is trying to evade regulators by keeping the whereabouts of various offices a secret.
He assured the public that Binance's local address and contact details were on file with regulators in all regions where the company did business.
Additionally, Binance has dedicated a section of its website to government agencies. According to the CEO of Binance, keeping positions secret is more for security reasons.
BNB and exchange are not affected
According to assessment and data from CoinmarketCap, Binance is and still is the largest cryptocurrency exchange in the world at the moment.
The regulatory scandal doesn't seem to have any effect on trading volume. Has increased 23% in the last 24 hours, with volume exceeding $12 billion in that timeframe. Nomics' Binance Impact Rating remains unchanged at 10.
The exchange's stablecoin, BUSD, does not appear to be similarly affected by the Reuters report. In 24 hours, more than $6.5 billion in trading volume was reported, with decentralized exchanges (DEXs) accounting for more than $43 million of that volume according to Coinmarketcap.
BNB price movement is essentially flat over a 12-hour period. Based on the chart, there is no increase or decrease in its price action.
The support line is seen in the $260 to $254.3 price range. Furthermore, the 50 and 200 moving averages, represented by the yellow and blue lines, seem to act as resistance at both the $281.9 and $309.1 levels.
The risk of accusations of stalking
The Binance CEO has strongly denied any regulatory inadequacies have been resolved at the company, as well as the recent fees.
Currently, BUSD is the 7th largest cryptocurrency by market capitalization, BNB is the 3rd largest stablecoin, and Binance Chain has a total locked value (TVL) of over $5 billion.
If Binance had been targeted by several regulators, exchanges and assets could have been affected, but for now, it's all accusations.
Oct 19, 2022