Serious Warning Issued Over Major Bitcoin And Crypto Exchange Binance And Its Ethereum Rival BNB After SEC Bombshell Hits Its Price


Bitcoin
BTC
and cryptocurrency exchange, Binance’s ethereum rival, BNB
BNB
has increased cryptographic graphics since its launch in 2017.

Subscribe now a Forbes CryptoAsset and Blockchain Advisor and successfully navigate the volatile bitcoin and cryptocurrency market

The price of BNB has skyrocketed 300 times, giving it a market capitalization of over $ 18 billion. The big rally has been helped by a sharp rise in both the price of bitcoin and the price of ethereum since late 2020, although it has recently fallen along with the wider crypto market as fears of a new “crypto winter” spread.

Now, after it emerged that BNB is the subject of an investigation by the Securities and Exchange Commission (SEC) into whether Binance has violated securities rules by selling BNB, an expert on bitcoins and cryptocurrencies has warned of “potential conflicts of interest and market equity “in Binance.

Want to stay ahead of the market and understand the latest cryptographic news? Sign up now for free CryptoCodexA daily newsletter for traders, investors and cryptocurrencies

“The same object of the SEC’s investigation, Binance’s BNB, is an excellent example of possible conflicts of interest and market equity issues,” Zoltan Kormanyos, general counsel for the international broker comparison website BrokerChooser, said in comments by email, adding that the SEC probe “reinforces the trend” the comparison site identified in its research on bitcoins and cryptocurrencies.

Kormanyos argues that cryptocurrencies use fundraising and trading products similar to traditional finance while arguing that regulators should treat them differently. Since the initial coin offering (ICO) boom in 2017, which saw an avalanche of companies seeking to raise money by issuing cryptocurrencies, the SEC has carried out dozens of enforcement actions on ICOs.

The investigation into Binance and BNB is likely to be months away from any conclusion, said a person familiar with the matter Bloomberg. The news of the investigation led to a 10% drop in the price of BNB, which has since risen slightly.

Binance’s BNB white paper, published before its release, said 85% of the funds raised at the ICO would be used to build and promote the Binance platform. Binance traders who use BNB to pay fees get a discount on the exchange.

Sign up now for CryptoCodex“A free daily newsletter for cryptocurrencies.”

MORE THAN FORBESThe report reveals White House cryptographic plans that will change the game that could have a serious impact on the price of Bitcoin and Ethereum

“While the SEC is investigating Binance, all eyes are now on the brand itself, which seems to lack transparency between entities, as it is unclear how Binance is related to other brands that are under the same umbrella,” Kormanyos said. pointing out a myriad of regulatory challenges Binance has faced over the past year and the relationship between Binance and its US subsidiary BinanceUS.

The price of BNB has fallen along with bitcoin, ethereum and other major cryptocurrencies in recent months, losing more than half of its value since late last year.

In late 2020, the SEC sued cryptocurrency company Ripple, alleging that it violated securities rules when it sold its XRP.
XRP
cryptocurrency, failing the price of XRP. Ripple is still locked in a long legal battle with the SEC even though the price of XRP has recovered.

This week, Binance was also accused of being the vehicle for money laundering of at least $ 2.35 billion in illicit funds.

Reuters released a report analyzing court records, spoke to law enforcement and worked with Chainalysis and Crystal Blockchain to analyze illicit funds in Binance, claiming that the exchange had become a “hub for hackers, fraudsters and drug traffickers.” .

Binance rejected the various claims in the report, saying Forbes the report is a “sadly misinformed opinion piece that uses outdated 2019 information and unverified personal statements.”



Source link

Leave a Comment

Your email address will not be published.