- 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
IRS says crypto staking should be taxed in response to lawsuit
The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode
Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses
Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery
The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.