Lockridge Okoth
FXStreet
BNB price faces another obstacle in its attempt to recover from a stark downswing. A recent notification from Binance to platform users indicates that the largest crypto exchange by trading volume faces another loss, parting ways with its European associate over regulatory clampdown.
Also Read: Binance motion against the SEC could instigate criminal prosecution, expert says
BNB price continues to test the critical support at $231.2, with every bullish attempt to recover being canceled out by negative developments in the Binance ecosystem. The token is down around 25% since June 5, when the US Securities and Exchange Commission (SEC) sued Binance and its CEO, Changpeng Zhao. The downswing, which started with a 10% slump, has extrapolated an additional 15%, and now the altcoin is trapped within a crucial zone between $256.2 and $231.2.
Notably, the last time this happened was in December, when the FTX exchange injured investor trust in centralized platforms, fueling the continuation of a bear market.
BNB/USDT 1-Day Chart
For BNB price to recover, bulls must shift their gaze from the current bearish fundamental presented in an official announcement from Binance to show another lost banking partner. A decisive daily candlestick close above the upper boundary of the consolidation zone at $256.2 would be a positive sign but Binance Coin will only be out of the woods upon a daily close above $348.4, levels last seen around mid-April.
Coindesk reports that Binance will stop working with Paysafe Payments Solution Limited beginning September 25, which means the platform has roughly three weeks to identify and integrate another EUR deposits and withdrawals provider. An excerpt from the announcement reads:
…Our current EUR fiat payments partner, Paysafe Payments Solution Limited, will stop offering SEPA deposit services to Binance users from September 25 2023.
SEPA is short for Single Euro Payments Area, defined as a payment-integration initiative of the European Union for the simplification of bank transfers denominated in euro.
Noteworthy, the notice does not terminate Binance's operations in the region. Rather, it merely means users would require new banking details with an entirely different company (not Paysafe) to deposit EUR fiat into their Binance accounts for trades.
Nevertheless, the exchange has asserted user funds' safety and other operations between now and September 25.
It is worth mentioning that the SEC clampdown on Binance has had extreme implications for Binance and its CEO, both socially and economically, with CZ's networth taking a grave hit. According to Bloomberg reports, Changpeng Zhao's networth slumped 73% from the $95.9 billion peak recorded in January 2022, positioning him at #45 on the Bloomberg Billion index.
Binance.com's regulatory battles are not limited to the United States border. Besides clampdown from the SEC, Binance was also compelled to pull out from the UK, Cyprus, and the Netherlands. A recent report also indicated that Belgium was against the exchange's operations within its borders, citing law-breaking and the "provision of services in Belgium from countries outside the European Economic Area (EEA)."
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