What Binance’s regulatory hiccups mean for BNB’s future
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As Binance grapples with potential withdrawal in Belgium due to regulatory pressure, the fate of BNB might also be hanging in the balance.
The FSMA in Belgium has recently instructed Binance to stop providing services in the country. BNB continued to gain ground as traders bet on future price rises.
According to recent developments, Binance [BNB] has reached a crossroads in Belgium, facing potential withdrawal due to new government regulations. As pressure continues to mount on the world’s largest exchange, what consequences will this have on BNB?
The Binance conundrum in Belgium
Belgium’s leading regulatory authority, the Financial Services and Markets Authority (FSMA) has delivered a firm order on the cryptocurrency exchange. It demanded an immediate halt to its services for local customers, per its official statement released on 23 June.
It further stated that Binance had been engaged in providing exchange services between virtual currencies and legal currencies, as well as custody wallet services, from non-European Economic Area countries.
According to the regulators, these services offered by Binance violated existing prohibitions.
Interestingly, this recent development echoed a previous incident faced by the exchange earlier this month. Binance had made a similar announcement regarding suspending its services in the Netherlands and Cyprus, also part of the European Economic Area.
Furthermore, there were whispers of potential investigations by French authorities into Binance’s operations. Although, it was quickly clarified that these were merely routine visits to the exchange’s premises.
BNB reacting to recent developments?
A closer look at the daily timeframe chart for Binance Coin showed that June had been challenging for the cryptocurrency. There has been a significant decline in its value, accompanied by the emergence of a death cross during the same period.
As of this writing, BNB was trading around $248.6, reflecting a modest increase of over 1.6%. However, despite the positive movement, the overall trend remained bearish.
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Source: TradingView
Additionally, the Moving Average Convergence Divergence (MACD) indicator was positioned above zero at press time, showing a positive trend. However, the broader trend was still bearish.
This sentiment was further supported by the Relative Strength Index (RSI), which remained below 40, suggesting a bearish outlook for BNB. The RSI line hovered just above 40, implying a lack of strong bullish momentum.
Furthermore, the long Moving Average (blue line) served as a price resistance level at around $299. This level previously served as a support zone before BNB’s decline.
BNB sentiment remains positive
Despite the downward trend in BNB’s price, there appeared to be a positive sentiment surrounding it, as indicated by data from Coinglass. The funding rate statistics revealed that BNB had consistently maintained a positive funding rate across several exchanges.
As of this writing, the funding rate remained positive, implying that traders were anticipating a potential increase in the coin’s price in the future.
The funding rate revealed market sentiment among traders. A positive funding rate suggests that more traders place long positions or buy BNB contracts, indicating a bullish outlook.
The situation surrounding Binance remains fluid as it navigates through these regulatory challenges. The exchange’s future in Belgium hangs in the balance, and its response to these directives will undoubtedly have ramifications for its operations and possibly BNB.
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