Binance Faces Regulatory Demands and Crypto Market Collapse

Market

Thursday, 03/08/2023 11:15 WIB

Photo: Infographic/ Chronology of Conflict between the US Stock Exchange Authority Vs Binance Cryptocurrency/ Ilham Restu

Jakarta, CNBC Indonesia – The crypto market collapsed immediately after news that Binance could face demands from regulators all the way to court.

Referring to CoinMarketCap on Thursday (3/8/2023) at 09.09 WIB, crypto has moved steadily down. Bitcoin fell 1.97% to US$29,230.61 and on a weekly basis edged down 0.47%.

Ethereum has depreciated 1.29% in the last 24 hours and in the last seven days it is down 1.59%.

Dogecoin has fallen 3.84% on a daily basis and is down 3.72%.

Meanwhile, Solana also fell 2.69 in the last 24 hours and on a weekly basis fell drastically 6.06%.

CoinDesk Market Index (CMI), which is an index to measure the performance weighted market capitalization of the digital asset market, also showed a decline of 2.35% to 1,260.02. Open interest weakened 2.07% to US$27.04 billion.

Yesterday’s downgrade of the US credit rating by Fitch sent Bitcoin (BTC) weakening again, adding to the weight of the previous problem, namely concerns about the possible impact of a lawsuit by US Department of Justice (DOJ) officials to the crypto market and Binance.

Coindesk.com reported that Binance’s Bitcoin (BTC) and BNB token prices fell immediately following reports that Binance could face US Department of Justice fraud charges.

US officials fear the charges could harm the wider cryptocurrency industry, according to Traffic lights. For that reason, they are considering alternatives such as fines and deferred or non-prosecution agreements. Binance declined to comment.

For your information, earlier this year, the Commodity Futures Trading Commission (CFTC) sued the company and its founder and CEO Changpeng “CZ” Zhao for “willful circumvention” of US laws.

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