Binance Coin (BNB) at the time of reporting has dropped by nearly 6 percent over past week, while other top cryptocurrencies have shown upside. Binance Coin (BNB) is a native coin of crypto exchange Binance and it’s only a matter of time before ongoing global regulatory crackdown affects BNB’s market. The crypto exchange’s regulatory trouble is expanding at an alarming rate, and price of BNB coin may drop with rise in regulatory hurdles.
Global Crackdown Against Binance on Rise
Nations and institutions that do not support Binance services in their regions are trekking towards the tip. A total of seven countries have announced Binance takedown in lieu of the exchange’s incapability to meet the digital currency regulations of the nations.
Binance regulatory crackdown started with Japan’s Financial Services Agency (FSA). FSA warned against the exchange of non-compliance and stated that Binance has been functioning in the country without registration under new guidelines and can potentially be charged with a criminal offense. Singapore came next to scrutinize Binance, by announcing inspection of native Binance Holdings Ltd. activities in the nation. Another nation that Binance had to left was Canada.
The unceremonious withdrawal was unsurprising in lieu of multiple claims of imposing strict restrictions on crypto trade and exchange in Canada. Thailand also joined the anti-Binance club after ordering a criminal investigation by the Securities and Exchange Commission (SEC) against Binance.
UK’s FCA is advertising against the exchange by warning investors and companies to stay away from Binance because it is unauthorized to operate in the country. Along with UK’s anti-Binance stance, Cayman Islands Monetary Authority (CIMA) ordered a probe after news of unauthorized Binance headquarters at the location. Most recently, Italy has joined the regulatory crackdown against Binance, for offering unauthorized investment services in the country.
It is not just the governments and institutions that are part of the Binance crackdown. Over 700 traders have filed a lawsuit together against Binance for technical error during a sudden plunge. During May when cryptocurrencies suddenly started to drop, Binance froze, stranding its users in the middle of a crypto apocalypse. The exchange froze for over an hour, costing hundreds and thousands of traders their fortune.
Rising Competition- FTX is a Potential Threat
While Binance is stuck in mud with regulatory and compliance concerns, FTX just raised funding at largest crypto valuation ever. FTX also bought back their shares in Binance recently, FTX founder Bankman-Fried said.
“I think it just makes sense given the role that our businesses are playing in the space. It can also give us more flexibility going forward.”
This was a highly debatable topic in crypto community and FTX pulling out of Binance may be a strategy to stay away from regulatory hurdles and prepare to surpass the largest exchange by volume.
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