Cryptocurrencies in recent months have had their worst period in a year, as have other risky assets. However, regarding cryptocurrencies right now, it may be difficult to find any positive news to support their prices. Additionally, the news that the world's largest exchange and fifth-largest cryptocurrency is under investigation may not improve sentiment.
Bloomberg reports that the Securities and Exchange Commission has opened an investigation into Binance in connection with the 2017 initial offering of the BNB token. The SEC is reportedly investigating whether the token offering constituted a sale of securities that would have to be registered. This is not the first time Binance has come under the magnifying glass of US regulators. The SEC's investigation into Binance CEO Changpeng Zhao's ties to two companies affiliated with Binance.US is still ongoing. Other investigations include a joint Internal Revenue Service and Department of Justice investigation into taxation and money laundering, and a Commodity Futures Trading Commission investigation into insider trading and market manipulation. Despite this, Binance has recently continued to win regulatory approvals in Europe and the Middle East, most recently in France, Italy and Dubai.
The current case looks similar to the one Ripple is fighting with the SEC. Here too, the U.S. regulator accused the company of conducting an unregistered securities offering worth $1.3 billion. Additionally, the latest developments come shortly after a Reuters investigative report revealed that the exchange served as a conduit for laundering illegal funds worth at least $2.35 billion. Binance's CEO has addressed Reuters' allegations with a series of emails, but that doesn't seem to have improved market sentiment. BNB is down nearly 10 percent in 24 hours, with bitcoin down more than 6 percent to $29500 and ETH down nearly 8 percent to $1,759.
Daniel Kostecki, Director of the Polish branch of Conotoxia Ltd. (Forex service)
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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