Bitcoin Mixed after US CFTC Sues Binance

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CFTC Charges Binance

The US Commodity Futures Trading Commission (CFTC) sued crypto exchange Binance for "willful violation" of federal law and violating and operating an illegal digital asset derivatives exchange. CFTC Chairman accused the firm of "working actively to both keep the money flowing and avoid compliance". Binance's compliance efforts were "a sham" according to the Commission's Chief Counsel, who also said that the firm "deliberately chose – over and over – to place profits over following the law". [1]

Mr Zhao, the CEO of Binance who is also charged in the complaint, spoke of an "unexpected and disappointing" civil suit, which contains an "incomplete recitation of facts". He also expressed his disagreement with "the characterization of many of the issues" alleged in the complaint, addressed a few key points and pointed to a full response in due time. [2]

Regulatory Tightening

This is only the latest episode in the regulatory crackdown on the crypto industry, with the Securities and Exchange Commission (SEC) and its Chairman Mr Gensler leading the charge, viewing digital assets as securities.

A few days ago, crypto exchange Coinbase, revealed that it had received a notice from the SEC for potential violations of securities laws, in regards to some of the firm's digital assets and staking service. Coinbase accused the SEC for an unfair approach and obscure rules. [3]

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BTC/USD Analysis

The action by CFTC against Binance put pressure on crypto firms, with COIN.us losing around 8% on Monday, as well as on digital coins, with CryptoMajors closing the day lower.

The news worked against Bitcoin, containing its recent rally ahead of the 30K handle. This creates risk for further slide towards the EMA200 (mid-24,000s), but new catalyst will be required for daily closes below that could send it into the daily Ichimoku Cloud.

On the other hand, BTC/USD shows resilience and has had an impressive performance during the banking turmoil, sparked by the collapse of SVB. Above the EMA200 bulls are in control and have the ability to take 30,000 out, although further gains above 32,397 may prove harder.

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 28 Mar 2023 https://www.cftc.gov/PressRoom/PressReleases/8680-23

2

Retrieved 28 Mar 2023 https://www.binance.com/en/blog/from-cz/czs-response-to-the-cftc-complaint-2408916493005890282

3

Retrieved 21 Jun 2024 https://www.coinbase.com/blog/we-asked-the-sec-for-reasonable-crypto-rules-for-americans-we-got-legal

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