Bitcoin plunges to $25,000 as SEC sues Binance

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Macroeconomics and financial markets

In the US NY stock market on the 5th, the Dow Jones Industrial Average fell 199 dollars (0.59%) from the previous day, and the Nasdaq Index closed at 11.3 points (0.09%).

May’s ISM non-manufacturing index (PMI) fell below market expectations, heightening fears of an economic recession.

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Virtual currency market

In the crypto asset (virtual currency) market, Bitcoin fell 4.2% from the previous day to $25,750.

BTC/USD daily

It broke through last month’s lows and plunged to the support line of $25,400.

Along with this, long positions equivalent to 40 billion yen were cut (forced liquidation) in the futures market.

coin glasses

The U.S. SEC (Securities and Exchange Commission) suspects major crypto asset (virtual currency) exchanges Binance and Binance US, affiliated company BAM Trading Services Inc., and Changpong Zhao (CZ) for violating U.S. securities laws. filed a lawsuit.

A total of 13 charges have been filed, pointing out suspicions such as lack of information disclosure, wash trade, which is fraudulent manipulation of trading volume, and misappropriation of customer assets that are not properly segregated and managed.

In addition, Binance’s native token BNB, stablecoin Binance USD (BUSD), Solana (SOL), Ada (ADA), Polygon (MATIC), Cosmos (ATOM), Algo Twelve stocks were listed: Land (ALGO), Axie Infinity (AXS), The Sandbox (SAND), Decentraland (MANA), Filecoin (FIL), and Coty (COTI).

Many major altos with high market capitalization are included, and it is believed that this led to a wide range of risk-averse selling from midnight to dawn in Japan time.

connection:US SEC sues Binance and CZ, claiming many cryptocurrency stocks as securities

SEC Chairman Gary Gensler said, “We have repeatedly argued that all crypto-assets (virtual currencies) other than Bitcoin are securities under the jurisdiction of the SEC.

Binance.US’s staking service, which it offered to customers in the United States, has also come under fire, similar to the case of the US exchange Kraken, which was sued in February this year.

connection:US SEC: Kraken’s cryptocurrency staking service violates securities laws

In response, Binance expressed its regret and disappointment, saying, “We have been working hard to resolve the issue, including fully cooperating with the SEC’s investigation, but the settlement negotiations were unilaterally rejected.” statement. Binance said that the impact of the SEC’s compulsory enforcement action, not the US exchange, would be limited, but showed a willingness to fight based on unclear regulatory rules.

In March of this year, it faced multiple problems, including a lawsuit from the Commodity Futures Trading Commission (CFTC) for illegally providing derivatives trading services in the United States.

connection:CFTC sues Binance and CZ for violating U.S. law

On the other hand, Bloomberg reported on the 5th of this month that CZ’s successor appointment has been confirmed, which suggests a group restructuring. Richard Teng, who has held positions such as the Monetary Authority of Singapore and is the regional head of Binance outside the United States, is seen as a likely candidate.

Binance has announced that it plans to open “Binance JAPAN (provisional name)” for Japanese residents who comply with Japanese regulations, and the impact is noteworthy.

connection:Binance Announces Scheduled End of Global Service for Residents of Japan

altcoin market

Alt market fell across the board after Binance incident.

Binance’s build and build (BNB) fell 8.09% from the previous day, while SAND fell 11.06% and MANA fell 9.7%.

The inclusion of tokens from blockchain games such as Axy Infinity (AXS), The Sandbox (SAND), and Decentraland (MANA) could make US exchanges reluctant to list, and liquidity There is growing concern that it will have a negative impact on

On the other hand, Lido Staked Ether (stETH), a decentralized finance (DeFi) protocol that has been spotlighted as one of the alternatives to the staking services of centralized exchanges in the United States, has risen to the 7th place in terms of market capitalization over the past few weeks. are doing.

connection:Liquid Staking (LSD) Tops DeFi Market, ETH Staking Demand Increases

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