NOIDA (CoinChapter.com)— Binance continues to face significant regulatory challenges, with the latest coming from Washington. Various countries have imposed fines, operational bans, and increased oversight on the exchange.
These regulatory pressures have required Binance to adapt its operations to comply with global financial regulations continually.
Regulatory Pressure Mounts on Binance.US
Binance.US will halt its crypto and derivatives services to Washington users due to regulatory sanctions. The exchange lost its operating license and will cease operations in Washington starting August 20.
Washington is the latest state to revoke the exchange’s license. This marks the eighth regulatory setback for Binance.US in the US, following former CEO Changpeng Zhao‘s guilty plea to violating anti-money laundering regulations.
Established in 2019 as a subsidiary of Binance.com, Binance.US operated independently but shares software, branding, and logos with its parent company. US regulators have accused Binance.US of commingling funds with Binance.com, especially after Zhao’s four-month prison term.
In June, North Dakota revoked Binance.US’s money transmitter license, forcing the exchange to suspend all transactions for North Dakota clients. Oregon followed by suspending the exchange’s money transmitter licenses.
Moreover, Binance.US also stopped onboarding new users in Georgia, Connecticut, Minnesota, and Ohio and had its licenses revoked in New York, Texas, Vermont, and Hawaii.
The Securities and Exchange Commission (SEC) has also targeted Binance.US, accusing it of failing to comply with registration protocols and lacking adequate measures to curb wash trading, manipulative trading, and money laundering.
Although the SEC tried to freeze Binance.US’s assets in June, a judge denied the request.
In addition to U.S. scrutiny, India’s Financial Intelligence Unit (FIU) fined Binance.US $2.25 million for violating anti-money laundering regulations. This follows a four-month operational ban and a $2 million penalty in January for failing to register and comply with Indian laws.
BNB Price Holding Above Trendline Support
BNB prices have been in a downtrend since June 7, losing nearly 22% to reach a daily low near $566 on June 27. However, the bulls seem to be defending a multi-month trendline support, regaining some of the day’s losses.
However, the Bull and Bear Power indicators in the chart show a bearish market sentiment. The histogram bars are predominantly negative, indicating that sellers are stronger than buyers and that bears are in control of the market.
If BNB fails to overcome the downtrend, the Binance token price could drop to the support level near $538. Breaching immediate support might force the BNB price to drop to the support level near $506 before recovery.
On the other hand, a recovery rally from here could see BNB price rise to the 20-day (red) and 50-day (purple) EMA resistance confluence near $596. Moreover, flipping the immediate resistance could bring BNB price rise to the resistance near $638.
The relative strength index for BNB remained neutral, with a score of 39.85 on the daily charts.
