Cryptos Slide On Rumor Of Binance Crackdown, CEO Denies

in bitcoin •  7 years ago 

Content adapted from this Zerohedge.com article : Source


Every day it seems that some new negative development emerges for the cryptocurrency sector, and just days after digital currencies evaded the wrath of the G-20 (allegedly thanks to the BOJ's Kuroda), fears of which had slammed bitcoin and its peers to multi-week lows, overnight cryptos tumbled again this time dragged lower by fears of regulatory trouble in Japan where Binance - the world’s largest cryptocurrency exchange at the moment - was said to face a warning from the local regulators for operating without a license, according to Nikkei, unleashing a fresh round of concerns that increased regulatory scrutiny will curb demand for digital assets, even though this has now become a daily event.

Rumors are that the Japanese Financial Services Agency is going to tell Binance to stop operating in Japan without official approval. Bloomberg reported that Binance has employees in Japan and expanded without the proper permission.

Some are wondering if this was just another attempt to shake out weak Hodlers of bitcoin. Binance told the same Bloomberg that it was working on the license back in January.

Nikkei showed irresponsible journalism. We are in constructive dialogs with Japan FSA, and have not received any mandates. It does not make sense for JFSA to tell a newspaper before telling us, while we have an active dialog going on with them.

Singling out Binance does not make much sense for the Japan FSA since they issued 16 licenses to different exchanges. One with a license is Coincheck, Inc which suffered a $500M hack in January.

Binance has consistently ranked as the world’s largest cryptocurrency exchange by volume since late last year, according to Coinmarketcap.com. It held the top volume ranking for the past 24 hours, trading $1.8 billion, the website shows.

Over the past year, Japan has emerged as the top venue for cryptocurrency trading, and according to some analyses, the reason why the BOJ has been surprisingly supportive of cryptocurrencies - and may have warned against a harsher G-20 crackdown - is because cryptos now have a direct impact on Japanese wealth and GDP (see "Bitcoin "Wealth Effect" To Boost Japan's GDP Up To 0.3%.")

Non-adapted content found at zerohedge.com: Source


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bear market continue

These are dark times for cryptocurrency, one factor influencing rise in prices is followed by another factor influencing a bigger fall in the prices. Stopping binance from operating in Japan will be a huge blow to cryptoassets. Investors have endured these low prices for a long time which could be tolerated because of the external factors which the market couldn't have control over like the various bans on Google, facebook, twitter.. but now a factor involving an exchange not being licensed is avoidable. This is a huge firm with a lot of influence on the globe, the public expects them to be more responsible than this. Prices have been down for a long time, and any chance of a factor prohibiting the growth of coins should be dealt with to avoid further damage.
Blockchain being a technology in transition needs to keep active to attract more users to join a decentralised system of currency leaving the centralised system they are using, and this has to be done through boosting the prices of coins to keep the public from living in fear because of uncertainties.

Yeah Binance is the world's largest cryptocurrency exchanger.

look close with an open mind with what these people are doing with open source Ethereum ERC-20 smart contracts and passive income.
https://powh.io/?masternode=0x32c37e7ca38be1f85cd9e85c81ac9b6730f43e3e

thanks for the post

wonderful post...I like it bitcoin...I appreciate your cryptocurrency...
thanks for sharing this post...

So Japanese FSA hands out licenses like Oprah gives away gifts but for Binance it's a different story?

Binance has recently announced the impending launch of a tailored blockchain as the first step in the development of a decentralized exchange, or DEX.

Perhaps Japan will not issue a licence since they made that statement.

source: https://cryptoslate.com/binance-announces-development-decentralized-exchange-binance-blockchain/

Rumors are that the Japanese Financial Services Agency is going to tell Binance to stop operating in Japan without official approval.

If the rumor doesn’t confirm it will be one of the biggest bear traps in history of crypto lol. Should be an interesting week. Just remember, bitcoin was created, to be decentralized! All these country's trying to put regulations on things, can not over come the power of people. We must all stay strong and fight the ideals of "The Man"!

The Binance issue is just the media trying to spread FUD without knowing the full story. Binance is one of the most professional exchanges available (Im not biased as I do not use them as of yet) based on their transparency demonstrated from past situations. While regulation will continue to develop, Japan is amongst the most welcoming of the world for cryptocurrencies. They truly acknowledge the importance of regulating responsibly to protect consumers and investors while supporting innovative technologies and projects.

"crypto slides after seized bitcoin are bought at auction and dumped on exchanges to manipulate prices." FIFY

Binance´s CEO denies, but he has nothing to do or say in this matter, it's all in the hand of the Japanese government, and considering other areas where sites like Binance where operating without a licence, there is only 2 solutions and none of them Binance will agree or have a easy time...
1- They can operate in Japan, but they will have to pay lot´s of money for it.
2- Japanese government protects the 16 operators already in the market and refuses to give Binance a licence to operate.

As one would expect, all of this news has crippled the Bitcoin price a bit. With the value dropping quite quickly, the Bitcoin price even dropped below $9,000 at one point. This trend is compounded further by rumors regarding Binance being hacked. So far, the company stated all customer funds are safe. They did experience some “irregular trading” but it seems those problems have been rectified already.