What’s Happening at Binance: What Will Happen to BNB After CFTC Accusations?
The CFTC has accused Binance of facilitating derivatives trading for US customers without proper registration and neglecting to verify the identity of clients before they trade on the platform. The regulatory body has demanded significant penalties, including “permanent trading and registration bans,” to which Binance responded vigorously. Despite the seriousness of the allegations, Binance’s response suggests that the platform does not see itself as facing an existential threat at this time.
BNB Has Already Been Down For A Time
The price of Binance Coin (BNB) has dropped over 5% in the past 24 hours to $310, likely in response to the news of the CFTC lawsuit against the platform and its CEO, Changpeng Zhao. Additionally, BNB’s price has fallen by nearly 7.5% in the past week, despite recording a rise of 2.5% over the last 30 days and a 26% increase since the beginning of the year.
Based on the tech indicators, it looks like BNB’s price could continue to decrease in the near future; this is particularly evident given that its Relative Strength Index (RSI) has dropped from 70 a couple of days ago to 50 now.
These results imply that more decreases could be expected before BNB reaches an oversold threshold, which is backed up by the fact that its 30-day average may quickly dip below its 200-day average.
CFTC’s Accusations Are Pretty Harsh
According to reports, Binance allegedly trained its staff and some of its customers on evading CFTC compliance inspections. Moreover, the exchange reportedly formulated its operations in a manner that skirted registration mandates from US authorities. Changpeng Zhao is accused of supervising over three hundred accounts that took part in insider trading on the Binance platform. If accurate, this allegation carries significant weight and has sparked a wave of intense criticism from those within the crypto world.
Given the magnitude of these allegations, many major stakeholders in the crypto sphere are now considering that regulators have a strong likelihood to inflict significant harm on Binance’s operations for years to come. In response to the CFTC’s actions, Binance has released an official statement denying all accusations made by the regulatory agency.