By Mark Ackman
Bitcoin Shows Strength in Staying On-Track
The World’s largest crypto platform by trade volume, Binance’s, miseries in the shape of legal complications are only increasing.
There is hardly any change that had occurred to Binance which needed to be appreciated. In fact, there could perhaps be a possibility, similar to that of FTX that Binance may also end up being bankrupt, defaulting, or collapsing.
Binance’s habit of getting itself involved in a number of disputes with worldwide regulators could be the biggest reason for its fall.
The latest enforcement action against Binance in the US has also turned out to be highly impactful on the crypto economy negatively. Trading values of the majority of cryptocurrencies have started to take a negative turn.
When the news of Binance was dragged into yet another court battle, the global crypto economy edged down subsequently. The entire crypto market took a major hit and it looked like things were going south for the crypto industry again.
Downtrend reduced Bitcoin’s value by at least $1,000 by bringing back Bitcoin into the $27,000 range. Luckily, Bitcoin has come out of the Binance impact and has been moving ahead by demonstrating extraordinary strength.
Investors’ Faith Pushed Bitcoin above $28K
The tensions for Binance are increasing every day which is causing a dramatic downturn impact on the global crypto economy. Because Binance is the largest crypto exchange in the world, its impact is also global.
If the Binance exchange faces a decline in its demand, it means that millions of investors have started to move away from the platform. These causes are major pulls in the entire crypto market.
However, the impact lasted a day later when on Tuesday and Wednesday the market went high as before. After moving into the red zone on Monday, Bitcoin is once again in the green zone since Wednesday.
When a Binance-concerned news item surfaced, Bitcoin was selling at the rage of $28,000. However, the news impacted the underlying value of Bitcoin and pushed it back into the $27,000 range.
As of now, Bitcoin is up by nearly 4% since going low below $27,000 and its present market value is $28,380.
Bitcoin is in fact proving itself to be a real gem of the crypto industry. It has once again proven that macroeconomic conditions help Bitcoin expand instead of bringing its performance down.
Litigation against Binance
A lawsuit to be taken up by Courts in the US against Binance was predicted much before the present.
Everybody in the industry knew from day one that Binance did exist in the US in some form or the other. However, the firm maintained its stance that it never served any US entity or individual directly from the US or into the US.
At best, it was thought that Binance could be asked by the US regulators to ensure that it never stepped into the US market.
However, the Commodity Futures Trading Commission (CFTC) of the US has found to the contrary.
CFTC has come to believe that not only Binance has stepped into US territory but the firm has been offering services for a long.
Since it is widely accepted that cryptocurrencies are ‘commodities’ hence Binance was to be seen as an exchange offering commodity trading.
CFTC hence assumed that Binance is a commodity trader and was legally obligated to seek CFTC’s registration.
Since Binance did not do so, hence, filing a lawsuit would be the most efficacious remedy available to CFTC against Binance.
It seems that the remedy has been duly availed by CFTC which has filed a suit against Binance in a District Court.
Meanwhile, Binance has no choice but to defend itself in the US Court. At best it can argue that it has no physical office in the US and hence the US Court is not competent to hear the matter.
Similarly, Binance not being a US entity, cannot be regulated or supervised by CFTC or any other authority.