Binance Coin (BNB), a digital asset created and issued by Binance, suffered a sharp 10% drop in its price amid increasing uncertainty surrounding Binance’s future. The crash occurred following reports that the US Securities and Exchange Commission (SEC) is investigating Paxos, a cryptocurrency firm that supports Binance’s stablecoin BUSD.
The SEC’s investigation into Paxos is focused on alleged violations of investor protection laws. This follows a recent settlement between the SEC and crypto exchange Kraken over its staking program, which is widely viewed as an escalation in regulatory pressure on the crypto industry.
Paxos says it's prepared to vigorously fight SEC lawsuit
— whalechart.org (@WhaleChart) February 13, 2023
Binance Faces Regulatory Scrutiny from Multiple Jurisdictions Worldwide
The decline in BNB’s value comes as Binance is facing regulatory scrutiny from multiple jurisdictions worldwide. Last year, Binance was instructed by the UK Financial Conduct Authority (FCA) to halt all regulated operations within the nation. Japan’s Financial Services Agency warned Binance of operating in the country without a license.
Moreover, the Central Bank of Lithuania recently warned consumers that Binance is not licensed to provide investment services in the country. The bank cautioned that cryptocurrencies are not regulated or supervised, and any central bank or public authority does not guarantee their value.
The SEC could choose any stablecoin to attack and went with BUSD, even though Paxos is fully regulated and compliant.
This is the path of most resistance.
Seems like a quiet and misguided attack on Binance.
— The Wolf Of All Streets (@scottmelker) February 13, 2023
Binance Responds to Regulatory Actions by Committing to Compliance and Engagement with Regulators
Binance has responded to the recent regulatory actions by announcing its commitment to complying with all applicable laws and regulations. The company stated that it takes compliance seriously and actively engages with regulators and law enforcement agencies worldwide to address their concerns.
BNB’s price decline highlights the growing regulatory pressure on the crypto industry and underscores the importance of complying with applicable laws and regulations.