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SEC’s Move To Sue Top Exchanges Decreases Trading Volumes – Blockchain News, Opinion, TV and Jobs

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2 weeks ago

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By Matteo Greco, Research Analyst at the publicly listed digital asset and fintech investment business Fineqia International

BTC closed last week at about $27,000, a 3.5% decrease from the $28,000 price at the end of last week. It dropped to about $25,500 on Monday, slightly moving upwards to $26.394 late Tuesday, after the SEC announced it is suing Binance and Coinbase, the world’s largest crypto exchanges by volume, for trading securities it deemed as being unlicensed in the US. Trading volumes remain at low levels, with BTC on-chain volume decreasing by 13% during May. The data suggests a difficult moment for the digital asset market in attracting investors and maintaining high trading volumes.

This can be attributed to two main factors. First, the difficult macroeconomic conditions are leading investors to adjust their positions in anticipation of announcements at the next FED meeting on June 14. While the CME futures expects with 80% probability that there will be no new rate hike at the next meeting, investors are still cautious as monetary policy expectations have changed rapidly from one day to another.

Second, the SEC is bearing down hard against exchanges. The US regulator contends that most digital assets qualify as securities and exchanges have been selling them to American investors without being appropriately registered in the U.S. The recent action being taken by the SEC against Binance and Coinbase caused a decline in the market, followed by a slight rebound during Tuesday.

The actions of the US regulator could push many exchanges outside the country, similar to what has transpired in Canada. It could benefit the Asian market, which is moving toward a friendlier environment for digital assets. As of June 1, the Japanese government lifted a ban on stablecoins and the Hong Kong government legalised the trading of cryptocurrencies by retail investors. Hong Kong asset manager First Digital is introducing a new stablecoin, for example, that will be pegged to the U.S. dollar.

These moves underlie attempts by Asian regulators to attract new investors in the digital asset market, a shift in attitude to the recent past, especially in China where cryptocurrency trading and bitcoin mining have been restricted.



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Binance

Bitcoin Retailers Buying The Dip As BTC Soars Above $26,000

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19 hours ago

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June 18, 2023

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On-chain data shows that Bitcoin retail buyers have been loading up the recent dip, a move that also coincided with price gains above $26,000, relieving traders and holders. Early this week, BTC prices crashed to as low as $24,820 before recovering to spot rates, adding 8% in four days.

Retail Investors Are Buying The Dip

Following a turbulent week in the crypto space, which involved the United States Securities and Exchange Commission, Binance and “crypto” securities-related drama, the price of Bitcoin dipped below $25,000 after the Federal Reserve paused their rate hikes and keeping the US fund rate within the 5% and 5.25% zone, increasing the uncertainty within the market.

However, the crypto market has since rebounded, with retail bitcoin investors, characterized by those holding 0.01 to 1 BTC, stepping in to buy up the dip.

Interestingly, the dip-buying behavior exhibited by retail investors is similar in level to that observed during the Silicon Valley Bank (SVB) collapse earlier in the year, but less than that of the post FTX collapse crash which saw Bitcoin’s price tank below $16,000.

With retailers loading up, it could indicate that traders and holders are confident of what lies ahead despite recent unfavorable fundamentals.

Bitcoin Whales On The Move

Meanwhile, with active Bitcoin retail buyers ramping up, “whales” have also been on the move. Crypto whales are addresses holding large amount of coins.

A Twitter user also noted that a user with 50 BTC worth around $1.2 million recently moved his coins after being dormant since 2010.

The batch of coins was originally mined in June 2010 and had remained untouched since then before being moved.

Following the trend, another previously dormant Bitcoin wallet, that has been dormant for a decade, transferred $7.8 million worth of BTC to a new wallet. Another long-term holder moved $11 million worth of BTC after more than 11 years of inactivity.

At the pivotal moment of BTC’s price and the crypto space, speculators are raising questions about the motives behind such massive movements of BTC. It is known that the trading activities resulting from the transfers can impact the coin’s supply and demand dynamics of Bitcoin, potentially exerting short-term influence on prices.

As of writing on June 18, Bitcoin is firm above $26,500, and has reversed losses of June 14. With retailers appearing to be buying the dip, prices may recover in the days ahead, even rallying to $30,000.

Bitcoin price, June 18 | Source: BTCUSDT On Binance, TradingView

Even so, Bitcoin remains under pressure and traders should watch how fundamental events, including the SEC lawsuits against Binance and Coinbase, would shape price action.

Featured Image from Canva, Chart from TradingView





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Binance sends cease and desist notice to fraudulent Nigerian entity

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21 hours ago

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June 18, 2023

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Binance CEO Changpeng Zhao has announced that Binance has officially issued a cease and desist notice to the fraudulent entity known as Binance Nigeria Limited.

On Sunday, June 18, Zhao took to Twitter to make the announcement. On June 9, the Nigerian Securities and Exchange Commission (SEC) released a circular stating the illegality of Binance Nigeria Limited in the country.

According to reports, a Binance spokesperson responded that the entity mentioned in the circular is not affiliated with the company. The spokesperson expressed the company’s intention to seek clarity from the Nigerian SEC and reiterated its commitment to cooperating with it on the next steps.

Although Binance claimed no affiliation with Binance Nigeria Limited, as mentioned in the SEC’s circular, the company is concurrently facing a lawsuit from the United States Securities Exchange Commission. The U.S. SEC has filed 13 charges against Binance entities and Zhao.

Related: Binance CEO CZ deems SEC’s request for emergency relief unwarranted

Some charges include operating as an unregistered exchange, broker-dealer, clearing agency and misrepresenting trading controls. The U.S. SEC stated that despite earning $11.6 billion from U.S. customers, Binance and Zhao failed to register as an exchange, broker-dealer or clearing agency.

In a recent development on June 17, U.S. Judge Amy Berman Jackson approved an agreement between Binance.US, Binance, and the U.S. SEC. This agreement resulted in the dismissal of a previous temporary restraining order that aimed to freeze all Binance.US assets.

Binance, which is available in about 100 countries, registered its headquarters in George Town, Cayman Islands, in 2017. In 2019, it also registered a subsidiary in Mahe, Seychelles.

Magazine: Crypto regulation — Does SEC Chair Gary Gensler have the final say?