Changpeng Zhao (CZ), CEO of Binance, the world’s largest cryptocurrency exchange in terms of daily trading volume, made statements about an altcoin related to the stock market. Here are the details…
Binance CEO’s tweet drew attention
A crypto trader with the username ReetikaTrades on Twitter theorized that the absence of the Binance stablecoin BUSD in the market would put Binance coin BNB in a better position. The crypto trader expressed this sentiment when reacting to a comment suggesting that the price of BNB rose 6 percent despite the recent regulatory action against BUSD. “They don’t know that less BUSD means that BNB is going up,” he argued. He added that people will “have to buy and hold more BNB for the fee reduction” in the spot market.
https://twitter.com/cz_binance/status/1625904278127710208
Surprisingly, Binance CEO Changpeng Zhao supported the theory, responding with a big grin, “Interesting approach. I never even thought about that angle.” The crypto phenom that started the conversation claimed that the rise of BNB, which defies regulatory action, represents a different dynamic in the market than what was achieved a few months ago. In the past, the actions of crypto-asset regulators have often provoked fear, uncertainty, and suspicion, causing prices to plummet.
Binance’s stablecoin is in the focus of regulators
However, according to data from market monitoring site CoinMarketCap, BNB has increased by over 8 percent in the last 24 hours. cryptocoin.com As we reported, Bitcoin (BTC) even broke a new price point after gaining over 10 percent in the past day. Earlier this week, the U.S. Securities and Exchange Commission (SEC) sent a Wells notice to BUSD issuer Paxos Trust Co. informing it of an upcoming enforcement action regarding the sale of an unregistered security. A Paxos spokesperson disagreed with the SEC, stating that the firm would vigorously prosecute the matter if forced.
Also, the Wall Street Journal noted in its latest report that the US Department of Justice is investigating Binance. This issue arose over possible violations of US anti-money laundering legislation. Binance’s CSO, Patrick Hillmann, stated that Binance is trying to close any gaps in its early compliance efforts. Despite this, he still predicts that regulators will impose fines for previous behavior.
According to media sources, the Commodity Futures Trading Commission (CFTC) is investigating whether Binance has been marketing cryptocurrency derivatives to U.S. customers without legal notice and registration with the regulatory agency. Hillmann noted that the company is “working with regulators to find out what fixes they need to go through now to fix this.” Even so, he predicts regulators could impose fines or more. However, he is unsure of the extent of the penalty.
