On Monday, March 28, 2022, the price of Bitcoin and other major cryptocurrencies fell after Binance, one of the world's largest crypto exchanges, was faced with a lawsuit by the US regulator, the CFTC.

harga bitcoin
Crypto News Today: Bitcoin Price Drops

 

The lawsuit accuses Binance of violating compliance laws and offering illegal derivative products, as well as "deliberate evasion" of U.S. law. This caused concern among crypto investors and resulted in a price drop. Nevertheless, it is important to remember that crypto prices are highly volatile and can be influenced by many other factors, including market sentiment, institutional adoption, and other news


Therefore, crypto investors need to be aware of market risks and consider diversifying their portfolios. The CFTC complaint states that Binance instructed employees and customers to bypass compliance controls, and likely engaged in insider trading by operating about 300 "house accounts" associated with Changpeng Zhao. The CFTC also accused Binance of operating illegal derivatives exchanges for tokens such as Bitcoin and Ethereum, which regulators consider commodities. The CFTC claims that Binance offers illegal futures contracts on crypto products, and does not have adequate systems in place to prevent money laundering and other criminal activities on its platform.


The regulator also said that Binance did not register with the CFTC to offer futures contracts on commodities such as crypto, thus violating US law. However, Binance itself has not provided an official response to this lawsuit. Keep in mind that the truth of the lawsuit still has to be proven in court, and this situation is still developing. Bitcoin's price fell by about 3% after the announcement of the lawsuit against Binance by the CFTC, while Ethereum lost 3.3%. Binance Coin (BNB), the exchange's native token, also fell by 5.5%. The overall crypto market cap fell by almost 3%, indicating the impact of this news on the overall crypto market.


The CFTC complaint cited several internal emails and memos disclosed by a series of Reuters investigations. The commission is seeking monetary penalties, as well as a Permanent ban on Binance activities. This shows that US regulators are very serious about overseeing the crypto industry and enforcing existing financial laws. However, this situation is still evolving and keep in mind that the final decision still has to be made by the court. Crypto investors should always be aware of the market risks associated with crypto investments and stay up-to-date with the latest news in the industry.


The lawsuit filed by the CFTC against Binance on Monday is the latest step in the ongoing regulatory battle against the crypto industry. Over the past few years, U.S. authorities have filed lawsuits against several high-profile crypto companies for engaging in fraud or violating securities laws. Recent media reports stated that the US Department of Justice has been investigating Binance for facilitating money laundering and terrorist financing activities since at least 2018. This shows that US regulators are not only keeping an eye on compliance issues in the crypto industry, but are also taking strict action against activities deemed to be in violation of the law. The battle against these regulations also includes an ongoing debate about crypto oversight and regulation around the world, with several countries seeking to tighten rules related to crypto and blockchain technology.


This shows that while crypto technology offers many potential advantages, there are risks and challenges that must be overcome by all parties involved in the industry. Recently, there have been several events that complicate the situation in the crypto industry. Coinbase, the country's largest crypto exchange, was notified of the pending regulatory action by the Securities and Exchange Commission (SEC). The action is related to Coinbase's plans to launch a crypto lending platform that the SEC considers a financial product that requires approval from regulators. In addition, Tron founder Justin Sun was charged with market manipulation and violating securities laws. 


This regulatory action, coupled with the closure of several crypto-friendly banks in March, could affect investor sentiment towards the crypto industry as a whole. However, it is important to remember that the crypto industry is a relatively new and rapidly growing industry. Therefore, some challenges and uncertainties may occur in the short term. However, many investors and experts are looking at the future of the crypto industry with optimism, as blockchain and crypto technology continues to show great potential in a wide range of applications and uses in the future. This also comes after rising interest rates and a series of bankruptcies have wiped out about 70% of the crypto market until 2022.


also read :

Bitcoin Price Soars Up to Support Level Up to $30,000

 

Warning!

This analysis is based on fundamental and technical views from reliable sources, and is not a suggestion or invitation. Always remember that this content aims to enrich the reader's information. Always use independent research first on other forex information to use as a reference in your trading.  
 
Get the latest news and articles from other GIC Indonesia, you can check on Google News every day to find out the latest updates about the world of forex to crypto. Also trade on GICTrade using an ECN account to enjoy trading with low spreads starting from zero!

Register Here To Get Crypto Trading Profits, Become a Profit Opportunity!