- The Binance exchange is facing significant difficulties because of regulatory clampdowns.
- The impact of the clampdown is reflected in the platform’s native token, BNB.
- Kaiko reveals that nearly every cryptocurrency on Binance.US trades at a 2% discount.
The Binance exchange is facing significant difficulties because of regulatory clampdowns in Europe and the United States. The impact of the clampdown is reflected in the platform’s native token, BNB, which has lost significant value. Kaiko, the blockchain data aggregation platform, also reveals that nearly every cryptocurrency on Binance.US trades at a 2% discount.
Binance native token BNB lost over 27% in June, dropping from $304 to a low of $220. The slump followed an allegation by the Securities and Exchange Commission (SEC) against the leading crypto exchange. The SEC accused Binance of mixing billions of dollars in customers’ funds and secretly sending them to a separate company controlled by Binance founder, Changpeng Zhao (CZ).
The SEC also sued Binance and Coinbase for regulatory violations. The commission accused both crypto exchanges of unregistered offerings and sales of respective digital tokens. Things appeared more complicated after a US District Court denied a motion by Binance to restrict the SEC from issuing public statements about the case.
Binance faces more challenges as its current EUR banking partner, Paysafe Payment Solutions Limited, will withdraw its support to the exchange in September, later this year. According to a Binance spokesperson, users on the exchange will need to update the banking details used to deposit to their Binance accounts. They may also be required to accept new terms and conditions to continue using SEPA services after the event.
The regulatory pressure faced by Binance this year has significantly impacted the exchange. Binance has since announced a retreat from the United Kingdom, the Netherlands, and Cyprus. Regulators in Belgium have also asked the crypto exchange to halt services in the country.
The multiple issues confronting the exchange are leaving a mark on its native token, BNB. Even when the entire crypto market enjoyed an upsurge, BNB’s price slumped or traded sideways.
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