[2018-03-22] BTC Price Falls as Markets React to (False) Japan Binance Thread

[nickbelski]

Bitcoin fell $500 in hours to hit two-day lows March 22 after news broke Japanese regulators may ban the world’s largest cryptocurrency exchange, Binance.

CO-FOUNDER YE NOT CONCERNED

UPDATE: Binance CEO Changpeng Zhao has responded to the news on Twitter stating that the source showed “irresponsible journalism” as the crypto exchange is currently in “constructive talks” with the FSA and did not receive any mandates so far.

Original article:

According to local news outlet Nikkei, Japan’s Financial Services Authority (FSA) is “investigating” Binance for operating without registration.

Should these operations not stop, the report states, the FSA will instigate “criminal charges” in collaboration with law enforcement.

The news appeared to have an almost instant effect on cryptocurrency markets, BTC/USD dropping below $9000 and continuing to head towards $8500 – its lowest levels since March 20.

While Binance has yet to provide official correspondence on the matter, co-founder He Yi poured cold water on the FSA’s threats, reportedly telling consumers they had nothing to worry about and that there were no official outposts of the company on Japan’s territory.

ANONYMITY ‘IRKED’ REGULATORS

The Hong Kong based exchange had applied for a licence to operate in Japan in January, as part of a scheme begun in April 2017 which has so far delivered 16 licensed exchanges.

Following domestic exchange Coincheck’s half-trillion dollar hack in January, the FSA stepped up rigorous inspections of remaining exchanges, demanding transparency to ensure no repeat of the Coincheck fiasco, which is ongoing, occurred.

Binance “has irked the FSA by failing to verify the identification of Japanese investors at the time accounts are opened,” Nikkei Asian Review meanwhile continues.

"The Japanese officials suspect Binance does not have effective measures to prevent money laundering; the exchange handles a number of virtual currencies that are traded anonymously."

The comments mirror those of authorities in South Korea, who hastily instigated an anonymous trading ban at the end of January.

Source: http://bitcoinist.com/bitcoin-price-japan-binance-threat/

[LoveKamil]

Hello everyone! I don't think that's why the price fell.Does one exchange may affect the market much?

[Alex077]

Hello everyone! I don't think that's why the price fell.Does one exchange may affect the market much?

The price fall might be caused by announcement, in which FSA threatened to close Binance. But the market is still unpredictable and fearful, so this news was acquired as real exchange close.
If it will be the last one bad news, the price of cryptocurrency will quickly recover and even start to grow.

[Lieldoryn]

Why should the price of bitcoin decline due to the problems of one exchange? I think that the owners of bitcoin could easily leave the stock market and instantly transfer funds to other sites. This will not affect the price of bitcoin in any way. This will create problems for only one exchange.

[richardsNY]

Why should the market even care about a potential halt of operations of Binance, a shitcoin exchange in Japan? It's absolutely ridiculous, and once again shows that all crypto related news sites are full of shit with their incompetent translators. Binance SHOULD be getting the appropriate licenses in Japan before being allowed to operate there. Binance doesn't seem to take any jurisdiction they operate in seriously. Binance's aggressive growth of the last year comes from allowing users from all countries to make use of their services -- things just don't work like that, especially with how advanced Japan's regulatory framework in terms of crypto is. Now it's Japan knocking on Binance's doors, but what country will be the next in line? As for the price, it goes down because of the strong resistance just above and around the $9000 level, which is common sense material to digest for the majority of the people here....

[Zicadis]

Hello everyone! I don't think that's why the price fell.Does one exchange may affect the market much?

If this was from a Japanese Binance Thread, the fake news goes to show we have more active users from Asia who will react to whatever news we are fade, I guess very few people have a stomach for fake news and if we are to survive in the cryptoshere for a very long time we need not to believe everything we read.

[Kevinbind]

Hello everyone! I don't think that's why the price fell.Does one exchange may affect the market much?

hey there
I think yes, it can. Market is very sensitive to all kind of information about things which it consists of

[darkangel11]

Why should the market even care about a potential halt of operations of Binance, a shitcoin exchange in Japan? It's absolutely ridiculous, and once again shows that all crypto related news sites are full of shit with their incompetent translators. Binance SHOULD be getting the appropriate licenses in Japan before being allowed to operate there. Binance doesn't seem to take any jurisdiction they operate in seriously. Binance's aggressive growth of the last year comes from allowing users from all countries to make use of their services -- things just don't work like that, especially with how advanced Japan's regulatory framework in terms of crypto is. Now it's Japan knocking on Binance's doors, but what country will be the next in line? As for the price, it goes down because of the strong resistance just above and around the $9000 level, which is common sense material to digest for the majority of the people here....

Because, sadly, the exchanges are the market. There's almost no other way to buy BTC than on privately owned exchanges like Binance and Japan is the largest market in the world right now with their highest trade volume.
People are prone to panic and quickly jump into conclusions. They like to see 2 and create another 2 out of thin air to be able to form 4. Binance got a cease order = Japan is cracking down on exchanges = people in Japan will soon be unable to trade = the largest market is closing = chaos and panic.

Nothing is going to happen, Binance will pay some fines, get a license and that's it.

[entrepmind23]

This kind of news might even be existing for days already but they reserved it for a while so that when they think the time is right, they would release it to spread FUD. For those using technical analysis in trading, it hit a fibonacci level that's why price turn around because of the regular profit taking so I don't know what really cause the fall. Binance has a large volume though so it is possible that those whales release that news after they took profit so that they can buy again lower. We know that there is too much manipulation in this market.

[CryptoBry]

Hello everyone! I don't think that's why the price fell.Does one exchange may affect the market much?

The price fall might be caused by announcement, in which FSA threatened to close Binance. But the market is still unpredictable and fearful, so this news was acquired as real exchange close. If it will be the last one bad news, the price of cryptocurrency will quickly recover and even start to grow.

We have to remember that in the world of trading -- cryptocurrency including -- anything can be the reason for any slide or surge. It is as if the market is just looking for an excuse and rumors or FUDs are playing a big part in this world. There are even times when the market is moving into a direction for no reason at all...and this might not anymore be surprising especially to veteran traders but can be daunting to people like me who is just new to this kind of set-up (but am learning don't worry).

[vit05]

CZ (not giving crypto away)
‏
Verified account
 
@cz_binance
 3h3 hours ago
More
We received a simple letter from JFSA about an hour ago. Our lawyers called JFSA immediately, and will find a solution. Protecting user interests is our top priority.

So, it wasn't fake news after all. But it isn't clear if they have been asked to close operation in Japan. I think they have been asked to send more information about their Japanese users. The fact that the Asia market has opened in red after the decision that Trump has made, could explain the Bitcoin price fail better them this information about Binance.

[Theb]

I don't think a particular news like this one has to do with the large drop. After hours of Bitcoin hovering barely on the 9,000$ and has failed to break the 9,200$ level it will surely go down as the bears have overcome Bitcoin. This news even if its true in reality won't have any effect on Bitcoin's price. We are just linking particular events like this one for us to have a reason why its going down or vice versa, when News is not the main indicator for its price movement.

[Getcoinsite]

Hello everyone! I don't think that's why the price fell.Does one exchange may affect the market much?

this what happen when the readers has no enough understanding about this kind of issues..the reaction is above normal and most of the time results for panic selling.cant we see how the members react in every small negative news that's coming here and there..i gues the best way to stop this style of fake news is to dont follow those false news poster.

[gabbie2010]

A larger population of bitcoin user don't use binance exchange, there are other exchanges and there other hodlers of btc who use both online wallet and hardware how come a little misunderstanding between FSA and binance could cause the price of btc to fall? I don't think there is any correlation between the two, my belief is that bearish market has momentarily taken over the bullish market.

[carlisle1]

A larger population of bitcoin user don't use binance exchange, there are other exchanges and there other hodlers of btc who use both online wallet and hardware how come a little misunderstanding between FSA and binance could cause the price of btc to fall? I don't think there is any correlation between the two, my belief is that bearish market has momentarily taken over the bullish market.

exactly,you got the point,binance is not the favorite exchange in this community,as we all knew that lots of great exchanges here and only few chooses binance so it wont effect the market at all,this is only for another distraction,if the bitcoin price start to stabilize lots of issues like this goes ariund the globl that brings trouble again to the moving market

[Palmerson]

I never react to such news. I think it's fake. Traders have a good profit only when the volatility of bitcoin is at maximum. We have seen a period of relative stability. It's not like the whales. In such conditions, they cannot exist. So they spread different news in order to destabilize the situation. The price reacts to our emotions. That's why I always keep calm.

[doonik]

Binance is one of the biggest exchanges of bitcoin and obviously its ban rumor in one of the most important countries in context to the crypto world announces its ban . This is why it lead to this leap . Any such little or big new is already hitting bitcoin hard and this was like a cherry on the top of the cake with all the ongoing issues of G20 , huge sell offs and ad ban .

[Schirer]

Firs of all irresponsible journalism strakes once again but nevertheless I think that price was bound go down in any case and is not a surprise for me. I think we will see a slight decline to 8k and then bounce back to 9k which will eventually lead to wedge pattern.

[Kemarit]

A larger population of bitcoin user don't use binance exchange, there are other exchanges and there other hodlers of btc who use both online wallet and hardware how come a little misunderstanding between FSA and binance could cause the price of btc to fall? I don't think there is any correlation between the two, my belief is that bearish market has momentarily taken over the bullish market.

exactly,you got the point,binance is not the favorite exchange in this community,as we all knew that lots of great exchanges here and only few chooses binance so it wont effect the market at all,this is only for another distraction,if the bitcoin price start to stabilize lots of issues like this goes ariund the globl that brings trouble again to the moving market

I don't know where you guys get the statistics that Binance is not very popular in this community. As per coinmarketcap, (https://coinmarketcap.com/exchanges/volume/24-hour/), its the number 1 trading exchanges, so this kind of FUD will put a pressure on the price as have seen it go south in the last 2 days or so. At least today though the price moves to $8600 so its a good indication that everything is clear now and this just a misunderstanding and it looks like the medias has spun it around as if something is wrong that's why the price is somewhat affected.

[1Referee]

I never react to such news. I think it's fake.

It's not fake, but simply nothing to worry about. It's just that the news sources releasing these articles always twist words in order to make it look more serious than it in reality is. Binance is a squatter for invading territory it isn't allowed to settle itself in, and that's what the Japanese government is pointing at, and rightfully so. If Binance did everything according to the rules/laws of every country it right now in most cases is illegaly operating in, it would never grow out to be the monster it is right now. But then again, very soon, even Binance will force people to comply with KYC/AML, etc. It will likely happen this year.