- Binance Coin is being sent lower by investors as Chinese lawmakers come out against Binance.
- Although Binance founder Changpeng “CZ” Zhao has been preaching that the KYC of Binance is stringent, multiple examples can be found that prove otherwise.
- Should China regulators crack down on Binance, deposit outflow could get triggered for the platform, causing a decline in BNB.
Binance Coin (BNB) price is trading sharply lower this Friday as Chinese regulators have come out with harsh statements against Binance Coin and its KYC (Know Your Customer) rules. By law Chinese citizens are forbidden to hold crypto deposits since 2021, while experts in financial regulation have shared their concerns that Binance’s KYC and anti-money laundering efforts are easily thwarted. A regulatory crackdown by China could set the scene for multiple regulatory crackdowns in other parts of the world like the US and Europe.
Binance Coin has traders price in a regulatory risk premium of 12%
Binance Coin price is already digesting the news that came out in early ASIA PAC trading. With price action already down over 2%, it has become clear that traders are on edge about what this could mean for the near term. A loss in trust in the Binance Exchange could spill over into BNB and batter the price action. A consolidation phase is being formed, and a bearish breakout looks granted.
BNB price could initially break toward $310 with the 55-day Simple Moving Average (SMA) and the monthly pivot as a double belt to provide support. Should the negative headlines out of the Chinese regulatory body pick up, expect that to be enough of a catalyst to break through the lower support. Price action will tank further and could slide below $300 toward $290 near the 200-day SMA.
BNB/USD daily chart
The consolidation phase could point to the countermove from bulls eagerly buying the volumes investors are dumping on the back of this news. Often regulatory injunctions are moving with the speed of paint drying. Binance founder Changpeng “CZ” Zha has already expressed full cooperation, and a solution could trigger a pop higher toward $350.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?