Yet another saga looming to hit bitcoin.

[CryptSafe]

Ever since I got to know about binance, they have always been on a logger heads with the SEC for one offence or the other and sometimes this affects the Crypto market.

Of lately, binance  are at it again with
"Commodities and Futures Trading Commission (CFTC) with binance arguing that the  CFTC’s charges “unexpected and disappointing” and said that Binance has worked with the regulator for over two years".  For quite some times now binance been acting funny with another claims by the CFTC also making more specific claims against Binance which " the regulator said that the exchange and its executives willfully evaded regulations, did not impose identity verification at times, and told customers how to avoid compliance controls — meaning that Binance has not fully addressed the details of the regulator’s allegations".

I noticed that the news affected bitcoin price as it dropped below $27000 but gradually picked up back above $27000.  So far from my experience I have had on this space, cases like this tends to affect bitcoin as binance is the world leading Crypto exchange and also have influence over the Crypto community and market.

Do you think this saga would affect the bitcoin if it looms?

Your opinions and contributions are welcomed. Let us discuss.

Source: https://cryptoslate.com/binance-calls-cftc-charges-unexpected-says-it-will-cooperate-with-regulators/

[OcTradism]

Of lately, binance  are at it again with

Binance is a biggest cryptocurrency exchange and they try to stay in grey areas so they are a most favorite targets for regulators. They also have many competitors and enemies that always want to attack Binance individually or in combined efforts.

If you knew Binance quickly to shift their Binance Global to Binance US. shortly after an explosion of the USA vs China trade war, you would see they are smart and very responsive to risky movements on the world.

With latest collapse of FTX exchange and their token FTT as well as attack on Binance months ago (late of December 2022) that caused Billions of dollar withdrawal from Binance, but they proceeded it well and survived, I think you would recognize that they have good management from technical, security to financial.

[Cryptomiles1]

There are other tougher treat that bitcoin has witness before and yet there is no final break down of bitcoin, if Binance is facing any challenge currently or would faced any that doesn't mean that bitcoin will be entirely affected. Yes it true that they are number 1 or 2 global leading exchange in the crypto space but that doesn't mean it would generally affect bitcoin, though the effect might only boil for a week or a month thereafter but I still believe bitcoin have waxed above any treat that may occur in any exchangers today.

For instance these country entirely here are really facing issues with bitcoin that doesn't mean the turbulence has brought bitcoin to it lowest part.

[DapanasFruit]

Certainly what can happen with Binance as a platforms can be affecting Bitcoin in the near-term just like what happened with FTX but in terms of long-term view Bitcoin can survive any challenge posed into it as long as the internet is existing and maybe as long as there are people who are adopting it. I would really be sad in case Binance will lose this case but then again the best thing to do is to negotiate just like what banks are doing and opt for fines so as to fast-track things and follow all the things regulators are asking to materialize right before their own eyes. This is one of the big risks of a centralized platform. So should we be selling our BNB now?

[Aanuoluwatofunmi]

I noticed that the news affected bitcoin price as it dropped below $27000 but gradually picked up back above $27000.  So far from my experience I have had on this space, cases like this tends to affect bitcoin as binance is the world leading Crypto exchange and also have influence over the Crypto community and market.

Do you think this saga would affect the bitcoin if it looms?

When wr talk about centralized exchanges, Binance is one of the leading but not everything you heard concerning them were right, because they are people out there to make more money on the investment people made with them or their digital currencies, news has it own effect on bitcoin value, but not as glaring as expected, but it's not a major determinant to have the fate of bitcoin value upon, no matter the publication on the news coming from centralized exchanges they can't determine for bitcoin else people will believe it's been manipulated as they had earlier thought about the whales.

[davis196]

the regulator said that the exchange and its executives willfully evaded regulations, did not impose identity verification at times, and told customers how to avoid compliance controls — meaning that Binance has not fully addressed the details of the regulator’s allegations".

If Binance is trying to avoid and/or break the regulations(and there's enough evidence proving CFTC's claims), then Binance must by penalized.
This will have a negative short term impact over the Bitcoin price(and probably all altcoin prices), but we shouldn't be worried, because BTC usually recovers very fast from such short term price turbulences. I don't see any big drama here. Big companies like Binance must play by the rules.
Nobody wants a "new FTX" to happen, but I think that Binance is way more financially stable than FTX and it won't turn into an exit scam.

[lewisrafael40]

I think it's worrisome that Binance is constantly facing legal issues. It could lead to loss of trust in the crypto market and negatively impact bitcoin prices.

[Kakmakr]

There is a saying that says, "The biggest trees, always catch the most wind" and this is so true for Binance... because they are one of the largest Crypto Exchanges in the world.

We know that it is a centralized financial institution, so the enemies in government will always target the big guys first.. because they know it will have the biggest impact, if they can bring it down. 

[Z-tight]

It is a saga looming to hit Binance and CZ and surely not BTC, neither Binance or CZ controls the BTC network, as a matter of fact nobody does. Binance have always run their exchange in a shady way only to make money for themselves, it didn't start today and it isn't going to end, i do not have a problem with the charges or whatever would be the outcome, i think these centralized exchanges should face as much regulations as possible, and even if they collapse, the BTC network would continue to work and even be stronger.

The charges against Binance are obvious, they allowed US customers to trade derivatives on their main Binance platform, and they also aided these US customers to avoid being detected as being from US. That is more like an exchange setting up a regulatory framework and helping people break that framework all by themselves, it should tell us Binance probably have no limit when it comes to making money.

I think it's worrisome that Binance is constantly facing legal issues. It could lead to loss of trust in the crypto market and negatively impact bitcoin prices.

Binance biting the dust would make many shitcoins to be expunged from the crypto market, and even though BTC price would go down temporarily, it is a good moment to buy more BTC for cheaper, because it isn't staying down permanently because Binance went down.

[ElmedoRator]

The story involving Binance and the CFTC could affect the price of Bitcoin and the crypto market in general. Binance is one of the largest cryptocurrency exchanges in the world and has a significant influence on the prices of many cryptocurrencies, including Bitcoin. If Binance runs into problems with the CFTC or other regulators, this could lead to anxiety in the crypto community and possibly lower the price of Bitcoin and other cryptocurrencies.
However, cryptocurrency is a very complex market and there are many different factors that affect its price. These factors include general market situation, global events, and I think when this is resolved we will see a stronger market against similar fuds.

[rat03gopoh]

I noticed that the news affected bitcoin price as it dropped below $27000 but gradually picked up back above $27000.  So far from my experience I have had on this space, cases like this tends to affect bitcoin as binance is the world leading Crypto exchange and also have influence over the Crypto community and market.

This will only add another point to dispel the trust in existing centralized services, bitcoin has become used to being hit by regulations harder than this one. Of course, bitcoin will however be impacted in terms of price as some people who normally have an interest in volatility only through centralized exchanges will become concerned.

[BenCodie]

I believe there are five possibilities regarding this ongoing saga:
1. Binance is slapped with a large amount of fines, which they would probably be able to pay as their profit is probably sitting at an astronomical level at this point.
In this scenario, the whole saga will come to a close quite quickly and there will probably be very little effect on the market.

2. Binance is asked to shut down their operations by the CTFC, to which Binance enters a power battle where they decline to shut down and continue to operate anyway.
In this scenario, the market will probably by effected at a minor level as people panic initially about the shutdown request but then realize that Binance is more powerful than CTFC demands, thus market recovers.

3. Binance is asked/forced to shut down their operations by the CTFC, Binance force users to withdraw their funds (without an exit)
In this scenario, some market panic will probably ensue as Binance liquidates their profits for fiat currency and panicked users may liquidate as well as their confidence in the crypto market as a whole reduces, plus FTX PTSD might also come into play.

4. Binance is asked/forced to shut down their operations by the CTFC, Binance exits.
Quite unlikely in my opinion, but a possibility nonetheless.

5. Binance is asked/forced to shut down their operations by the CTFC, Binance forces users to withdraw their funds (without an exit) and create a decentralized exchange based on BSC and moves all of their holdings to fund this venture.
Not as unlikely as an exit but probably still unlikely to happen in a quick manner.

Public sentiment seems to be swaying toward scenario 1. I believe that any of scenarios 1, 2, 3 or 5 are possible. I don't believe an exit is coming. I do believe that extreme volatility will come if scenario 1 does not play out, or if scenario 2 plays out and it backfires on binance/cz.

[Ronsbit]

To the best of my knowledge OP, bitcoin has been in existence before binance and have scaled through hurdles, down trend and criticism to arrive at where it is today  but binance is just few years old and has not stood the taste of time just as bitcoin did. I see no way binance saga would effect the bitcoin market as it has made a niche for itself before the inception of binance. Of-course binance is amongst the worlds largest crypto currency exchange with large daily trading volume but they are government regulated body and can dance to the gallery with the government but it is different when it comes to bitcoin as bitcoin is not regulated and controlled by government just like binance. With this, i think binance saga would not affect the bitcoin market.

[adzino]

Ever since I got to know about binance, they have always been on a logger heads with the SEC for one offence or the other and sometimes this affects the Crypto market.

Of lately, binance  are at it again with
"Commodities and Futures Trading Commission (CFTC) with binance arguing that the  CFTC’s charges “unexpected and disappointing” and said that Binance has worked with the regulator for over two years".  For quite some times now binance been acting funny with another claims by the CFTC also making more specific claims against Binance which " the regulator said that the exchange and its executives willfully evaded regulations, did not impose identity verification at times, and told customers how to avoid compliance controls — meaning that Binance has not fully addressed the details of the regulator’s allegations".

I noticed that the news affected bitcoin price as it dropped below $27000 but gradually picked up back above $27000.  So far from my experience I have had on this space, cases like this tends to affect bitcoin as binance is the world leading Crypto exchange and also have influence over the Crypto community and market.

Do you think this saga would affect the bitcoin if it looms?

Your opinions and contributions are welcomed. Let us discuss.

Source: https://cryptoslate.com/binance-calls-cftc-charges-unexpected-says-it-will-cooperate-with-regulators/

News involving major exchanges like Binance can have an impact on the overall crypto market, including Bitcoin, but those affects are usually temporary. If you look at the history (or news few weeks ago), you will see that the crypto market has proven to be resilient over time, bouncing back from various events and controversies. This Binance issue might cause short term volatility, people will panic sell, price will fall, others who has been in the market for a while will take this opportunity to invest more and then eventually the price will bounce back to normal. See the market now. Like you said it went below $27,000, but it is already above $28,400 at the time of writing this.

[Darker45]

This isn't the first time that Binance faces a legal battle. Binance has been at odds with so many governments for years already. They've been declared illegal in some countries and kicked out. It was even kicked out of the US way back in 2019. So I don't think this another issue against a government body will pull the price of Bitcoin down.

Binance has been controversial and has been all over the news for many years already. Issues like this won't be too big of a deal to the market, although if this results in Binance crumbling down or of CZ arrested, which is highly unlikely, it may indeed have a massive effect.

[Husires]

Does Commodities and Futures Trading Commission (CFTC) have the right to investigate all activities of Binance or Binance.us? As the platform stopped all activities in the United States.
Is the news appointed by any scope of them because I believe that Binance is a completely separate entity.
Let's see how the investigations will go, which I think will end with a fine.

[BenCodie]

Does Commodities and Futures Trading Commission (CFTC) have the right to investigate all activities of Binance or Binance.us? As the platform stopped all activities in the United States.
Is the news appointed by any scope of them because I believe that Binance is a completely separate entity.
Let's see how the investigations will go, which I think will end with a fine.

They probably believe that they have the right to...though since all activities in the US have stopped and Binance is arguably a powerful enough entity to reject the requests of the CFTC, I would doubt a lot that Binance will be willing to cooperate with them, especially after Binance supposedly helped the CFTC and are now feeling "disappointed" (as cz puts it) about their actions. I would not be surprised if Binance figuratively flipped the CFTC off and continued on with business. I agree that a fine is probably what's coming though. I am curious to see the outcome.

[Merit.s]

This will surely have effect on bitcoin price but it wouldn't be for long,since bitcoin can recover fast from any challenge that will hit the crypto market. Binance is the largest exchange and that is why the government is targeting it. It is a conspiracy of the  crypto investment but they will fail. CFCT doesn't have the right over Binance who is a separate entity and I don't think Binance will fall for them. It is a matter of time and we will see what will be the outcome is this charge,bitcoin price will certainly keep on pumping up no matter the outcome of this problem. If the price dumps,it is an opportunity to accumulate more coins.

[BenCodie]

This will surely have effect on bitcoin price but it wouldn't be for long,since bitcoin can recover fast from any challenge that will hit the crypto market. Binance is the largest exchange and that is why the government is targeting it. It is a conspiracy of the  crypto investment but they will fail. CFCT doesn't have the right over Binance who is a separate entity and I don't think Binance will fall for them. It is a matter of time and we will see what will be the outcome is this charge,bitcoin price will certainly keep on pumping up no matter the outcome of this problem. If the price dumps,it is an opportunity to accumulate more coins.

The effect on the market has already dissipated and I believe that the whole media string was to even the balance of longs to shorts because the market is too strong to manipulate downward right now. I believe we can expect more of this over the next few months...seemingly big, frightening news to get people to reduce their long positions or put up their short positions, then pump shortly after.

It also dissipated as it has been reported that China is opening their arms up to Crypto again and after so, makes the US look extremely irrelevant while they and their counterparts aim to tighten up their regulations.

[passwordnow]

As you have said, it has already affected the market quickly. But as time goes by, this news will just affect the market temporarily in a quick manner and then the market will go back to its former and will recover hastily. Even if there will be more bad news than this from Binance. The market has shown how resilient it was and that's why, that news will have a significant impact at the beginning but then, it will just make the bitcoin stronger.