Binance Coin price remains unaffected despite losing derivatives license in Australia

• Binance Coin price stood trading at $311.9 consolidated within the $340 to $297 range since mid-January.
• Australia Security and Investments Commission canceled Binance’s Australian Derivatives license citing investor classification compliance.
• This is Binance’s second run-in with the authorities after facing a lawsuit at the hands of the US SEC last month.

Binance continues to face trouble even as the market moves into the second quarter of the year. The crypto exchange is now in the crosshairs of the Australian regulatory body, which is taking action against its derivative trading service. Surprisingly, Binance Coin price witnessed virtually no change.

Binance Derivative license canceled

Binance Australia Derivatives, which was operating under the license held by Oztures Trading, has been asked to wind down its services. The Australia Security and Investments Commission (ASIC), in its official statement, said that the decision to cancel the license was taken after a targeted review of the exchange’s operations in the country.

The Australian regulatory body also clarified that the cancelation of the license has no effect on the requirement for Binance to continue as a member of the Australian Financial Complaints Authority. ASIC, in response to the license cancelation, stated,

“ASIC has been conducting a targeted review of Binance financial services business in Australia, including its classification of retail and wholesale clients… ASIC has repeatedly warned potential crypto users that crypto is risky and complex. Crypto derivatives pose additional risks to consumers through the operation of leverage.”

Binance on the regulatory front is not doing particularly well as the crypto exchange is already fighting for itself in the United States. The Commodity Futures Trading Commission (CFTC) in the US recently charged the company and its CEO, Changpeng Zhao, with violating trading and derivatives laws. 

The exchange has been the subject of CFTC’s investigation for almost two years despite Binance claiming it has been working with the regulatory bodies in the country.

Binance Coin price stands still

Binance Coin price surprisingly observed no change on April 6 following the news of the cancellation of the Australian license. Trading at $312, BNB has been consolidating in the range of $340 and $297 since mid-January, falling through the critical support level once last month.

At the time of writing, the altcoin stands above the 50, 100 and 200-day Exponential Moving Averages (EMA), noting support against a price decline. The Relative Strength Index (RSI) is also coinciding with the neutral line, and flipping it into support would indicate a bounce in price is likely.

Should BNB observe bullishness going forward and flipping the barrier at $321 into support, it would be able to breach the critical resistance at $340. Binance Coin price would thus mark a five-month high, registering new 2023 highs as well.

BNB/USD 1-day chart

However, if the altcoin slips below the critical support at $297, it would be vulnerable to a decline to March lows of $276 and beyond.

---