Schlagwort: crypto business

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Bitcoin unfazed by SEC suing Coinbase and Binance

  • The SEC is suing Coinbase and Binance, in yet another scandal in the crypto industry 
  • Bitcoin price remains unfazed
  • A bullish breakout might be triggered by the Fed not hiking the funds rate again 

The cryptocurrency industry faces, yet again, another test of confidence. The Securities and Exchange Commission (SEC) announced that it was suing Coinbase and Binance in a move that scared cryptocurrency traders operating on the two exchanges. 

But what had the potential of triggering a bearish move in the main cryptocurrency markets turned out to have zero impact. In particular, Bitcoin shows resilience, trading in a consolidation area before its next move. 

Bitcoin chart by TradingView

Is Bitcoin forming a bullish flag pattern?

One of the reasons why Bitcoin is resilient to such news is that it has become much more correlated with traditional markets. For instance, the tech sector’s movements influence Bitcoin much more than anything else. 

Tech stocks surged in 2023, and so did Bitcoin. 

After failing at $30k, it entered a consolidation which continues still. At this point, it looks like Bitcoin forms a bullish flag pattern, but only if the market makes a new yearly high one may be sure the consolidation ended. 

Therefore, to trade this bullish flag, one needs two things. One is to wait for the market to move first and trade above $30k again. Such a move will signal that the bullish consolidation is over, and it is time to trade the measured move. 

In this case, the measured move is about $10k projected from the upper edge of the flag. That gives us a target of $38k for Bitcoin, should it make a new high for the year. 

All in all, the recent scandals might prove, once again, Bitcoin’s resilience. The cryptocurrency moves in line with the US dollar and the tech sector, and so, if the Federal Reserve decides to pause and not hike the funds rate at the next week’s meeting, Bitcoin’s chances of squeezing higher increase significantly. 

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Kraken probing funding Gateways amid deposit and withdrawal delays

  • Kraken recently suffered operational delays due to technical issues with crypto funding gateways.
  • The exchange was however able to quickly resolve the problem although the exact cause hasn’t been disclosed.
  • The delays caused panic since they came at a time when crypto exchanges in the US are under scrutiny by the SEC.

Kraken crypto exchange recently suffered a technical glitch that impacted several crypto funding gateways. Among the affected crypto funding, channels included Bitcoin (BTC), Ethereum (ETH), and ERC-20 tokens.

Users from various places complained of deposit and withdrawal delays drawing attention to the delicate infrastructure supporting the transactions.

Swift response by Kraken

After customers raised the issue, Kraken earlier today (7:15 am UTC) announced on its status page that deposits and withdrawals were facing challenges. The crypto exchange then immediately embarked on rectifying the issues and by 8:55 am UTC, the delays were resolved according to an update given by the exchange on their status page.

At around 10:30 am UTC, Kraken’s futures trading platform was temporarily suspended for about 10 minutes for scheduled maintenance, which was separate from the earlier delay issues.

Kraken is one of the oldest cryptocurrency exchanges and it supports more than 200 cryptocurrencies and six fiat currencies.

Uncertainty caused by SEC’s legal action against crypto exchanges

Against the backdrop of the brief technical glitch, Kraken and other cryptocurrency exchanges are coping with the uncertainty caused by SEC’s legal action against Binance and Coinbase. The US SEC first sued Binance before later announcing that it had also sued Coinbase today.

Arcra’s Chief Investment Officer pointed out that the measures taken by the SEC against Binance indirectly impact tokens listed on Coinbase, Kraken, and other crypto exchanges with a presence in the US.

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The SEC strikes again: First Binance, now Coinbase

Key takeaways

  • The US SEC has sued crypto exchange Coinbase for acting as an unregistered broker.

  • This latest development comes a few hours after the regulatory agency sued Binance.

SEC sues Coinbase for acting as an unregistered broker

The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase, one of the leading crypto exchanges in the world.

This latest cryptocurrency news comes barely 24 hours after the SEC slapped a lawsuit against rival exchange Binance. 

SEC filed the lawsuit a few minutes ago, alleging that Coinbase has never registered as a broker, national securities exchange or clearing agency. Thus, the SEC claims that Coinbase has been evading the disclosure scheme for securities markets. 

The regulatory agency alleged that several tokens offered by the crypto exchange are securities. SEC filed the lawsuit in a New York Federal court.

Coinbase is yet to respond to the lawsuit. This latest development comes as the SEC and Coinbase have been battling a legal case over the past few months.

Earlier this year, the SEC issued Coinbase a Wells Notice, indicating that it is looking into the affairs of the cryptocurrency exchange. 

The crypto exchange now filed a lawsuit against the SEC in April, asking the securities regulator to provide a yes or no to its request for the commission to draft and approve a digital asset-specific rule.

US SEC is coming after exchanges

The lawsuit against Coinbase comes barely 24 hours after the SEC went after Binance, the world’s largest cryptocurrency exchange by daily trading volume. 

The SEC alleged that Binance was offering services to high-valued US customers on its platform, which is in violation of U.S. securities laws.

The regulatory agency also claimed that Binance CEO exercised control over customer assets, adding that he combined them with personal and company holdings.

The SEC has been coming after crypto exchanges in recent months, including Kraken. 

Coinbase’s stock price has dipped by more than 15% during Tuesday’s pre-market trading session following this latest development. COIN is now trading at $49.44 per share. 

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BNB price prediction: Is it safe to buy Binance Coin now?

  • The SEC delivered the biggest lawsuit in the crypto industry.

  • It sued Binance and Changpeng Zhao in the United States.

Binance Coin price has been in a freefall after the SEC filed a major lawsuit against Binance and its CEO. BNB coin retreated to a low of $272.6, the lowest level since March 11. It has plunged by more than 20% from the highest level this year.

SEC sues Binance and Changpeng Zhao

Binance Coin and other cryptocurrencies plunged hard on Monday and Tuesday after the SEC filed one of the most consequential lawsuits in the crypto industry. In a statement, as we wrote here, the agency sued Binance, alleging that it had defrauded customers and offered regulated products to American customers without following the law.

As expected, in most periods, cryptocurrencies tend to underperform when there is a major announcement such as this. We saw most of them plunge after the collapse of FTX and Terra and its ecosystem. Most importantly, XRP and other coins plunged after the SEC launched a lawsuit against Ripple. 

There are also concerns about the state of regulations in the industry with the US using enforcement instead of engaging the crypto industry. Analysts believe that the agency will continue being tough against digital currency companies after the collapse of FTX.

Still, this is not to say that BNB coin price will continue falling. Instead, the most recent data shows that Binance is doing well. For example, data by DeFi Llama shows that Binance has had over $1.47 billion in outflows in the past 24 hours. While this is a huge number, the company still has over $51 billion in assets.

Further, historically, many investors tend to buy the dip in crypto after big events. For example, most coins jumped this year despite the collapse of FTX.

BNB price forecast

The daily chart shows that the Binance Coin price has been in a slow bearish trend in the past few days. This sell-off intensified after the SEC lawsuit. As it plunged, the coin crashed below the key support level at $298.4, the lowest point on May 12th.

Binance Coin retreated below all moving averages and is slightly above the key point at $265.6. Therefore, I suspect that the coin will remain under pressure this week and then bounce back as the lawsuit fades. As we have seen with XRP, it is possible for a coin to rise despite the lawsuit. The initial level to watch will be at $265.

How to buy Binance Coin

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy BNB with eToro today

Binance

Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600. Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.

Buy BNB with Binance today

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Binance on SEC’s lawsuit on Monday: ‘we will vigorously defend’

  • SEC sued Binance for violating securities laws on Monday.
  • Here’s what Binance said in its response to the regulator.
  • Coinbase Global ended 10% down on today’s development.

Binance is in focus on Monday after the U.S. Securities and Exchange Commission (SEC) sued the world’s leading crypto exchange.

Here’s what Binance said in its response to SEC

In its lawsuit, the regulator accused Binance as well as its CEO Changpeng Zhao for failing to comply with the U.S. securities laws. The CFTC had previously filed such charges against the crypto company as well.

SEC also alleged that Binance commingled user funds worth billions of dollars with Merit Peak Limited – a CZ-controlled European company. Only hours later, though, Binance declined claims of wrongdoing and said in its official response to the regulator:

Any allegations that user assets on the Binance.US platform have ever been at risk are simply wrong. We will vigorously defend against any allegations to the contrary.

Crypto community stood with Binance on Twitter

On Twitter, the crypto community demonstrated support for Binance and CEO Changpeng Zhao. Many found the SEC unfair in the way it was dealing with crypto assets in the United States.

In its response, Binance also said that the regulator’s overreach was hurting the U.S. reputation as a global hub for financial innovation. Still, it added:

We’ll continue to cooperate with regulators and policymakers across the globe. We remain committed to productive engagement to ensure next-gen of crypto regulation fosters innovation.

SEC’s lawsuit against Binance saw shares of peer Coinbase Global Inc lose about 10% today.

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