Coinbase is delisting the Binance USD stablecoin (BUSD). Binance stablecoin reserves are falling. What’s going on?
The largest U.S. cryptocurrency exchange Coinbase discontinues support for BUSD Stablecoin on all platforms. The exchange announced this on its official Twitter account. Trading of stablecoin will be stopped on March 13, 2023. Also Binance stablecoin reserves fell.
The exchange stressed that it regularly checks registered assets and checks them for compliance with listing requirements. Binance USD (BUSD) did not pass the last check. What exactly are the requirements BUSD Stablecoin did not meet, the cryptocurrency exchange does not specify.
The token will be excluded from available trading assets for all crypto-exchange customers working on Coinbase Pro, Coinbase Exchange and Coinbase Prime platforms. However, users will still have access to their coins. Also, they will be able to withdraw them at any time, even after delisting.
Binance best stablecoin has one problem after another
Binance USD (BUSD) is the third-largest stablecoin with a market capitalization of more than $10 billion, down 31% in 30 days. In the overall ranking of cryptocurrencies, BUSD ranks fifth.
Trouble for Binance USD (BUSD) Stablecoin began after the New York Department of Financial Services (NYDFS) launched an investigation into the issuer of Paxos Stablecoin. Even though for the cryptocurrency exchange Binance and directly for BUSD, the actions of the regulator do not pose an immediate threat, the cryptocurrency community is confident that this crisis will not pass without a trace.
Soon, the U.S. The Securities and Exchange Commission (SEC) filed claims against Paxos, forcing the company to stop issuing BUSD stablecoins. In mid-February, members of the decentralized lending protocol community Aave announced that they plan to freeze the Binance USD (BUSD) stablecoin due to regulatory pressure on Paxos. If the proposal is accepted, starting in April, users will only be able to burn BUSD tokens at their base value.
Previously, we reported that investors’ interest in altcoins has started to actively grow.
Cryptotraders lost more than $250,000,000 in liquidations after Fed rate hike
Cryptotraders had a tough day: almost 68,000 positions were liquidated on exchanges in the last 24 hours, and the total volume of liquidations exceeded $257,000,000. All this happened against the news of the US Federal Reserve’s rate hike and another Securities and Exchange Commission regulatory action against cryptocurrencies.
Cryptotraders lost $132,000,000 in BTC
Bitcoin, Ethereum, and Ripple were the leaders in the number of forcibly closed positions. BTC liquidations totaled almost $132,000,000; Ethereum traders lost $51,000,000. XRP positions accounted for about $8,000,000 of liquidations. Bitmex exchange executed the largest order of $7.39,000,000.
Cryptocurrency market capitalization has declined 2% in the last 24 hours, but is still above the $1 trillion mark.
The weekly CoinShares report also recorded a massive outflow of funds for six consecutive weeks. During that period, nearly $500,000,000 was withdrawn from cryptocurrency platforms, with $113,000,000 coming from bitcoin. Analysts at the company believe the outflow is due to liquidity needs during the banking crisis rather than a negative outlook. The company mentions that a similar scenario was seen in March 2020 amid a COVID-19-induced panic.
Regulators continue to hunt the cryptobusiness
Another reason for the increased volatility in the market has been harsh action from U.S. regulators. Last night it became known that the U.S. Securities and Exchange Commission sued cryptomagnate Justin Sun, accusing him of fraud and market manipulation.
The SEC also issued a notice of wrongdoing against Coinbase, the largest U.S. cryptocurrency exchange. The securities regulator sued Coinbase Global Inc, for some of the products it offers.
We previously reported that Bitcoin (BTC) tests $28,000, but onchain metrics urge caution.
Binance was caught circumventing KYC to register Chinese clients
Employees of the cryptocurrency exchange Binance help clients from China to bypass compliance and verification. CNBC writes about it, citing hundreds of corporate emails from exchange employees on Discord and Telegram. It is reported that Binance has helped over 200,000 users register, bypassing its own security system. One case describes correspondence between a user from China and a Binance employee.
The employee under the pseudonym yaya.z suggested the user from China turn on a VPN, register as a Taiwanese resident and then return the location to China. Binance employees also advise customers not to use VPN services from the U.S., Hong Kong and Singapore, because the exchange does not provide services in those regions, writes CNBC. At the same time, Binance freely processes applications from U.S. email providers like Gmail or Outlook for registration.
The exchange even offers specialized mobile applications for customers from China. A CNBC reporter could download a special mobile application from Binance via email. At the same time, no VPN was needed to download the app, as the download was conducted through the domain of binance[.]com. It is also alleged that the exchange still verifies users with Chinese phone numbers.
An exchange spokesperson denied the existence of a special Chinese version of the mobile application. The exchange also added that it has improved the system to identify users from banned regions. CNBC notes that after providing evidence, Binance removed employee messages from corporate chats to circumvent KYC.
We previously reported that the Ethereum (ETH) price crossed the $1,800 mark, opening the way to $2,000.
Why cryptoanalysts expect bitcoin to fall
The market remains in a bearish trend and bitcoin (BTC) will resume its fall and test $16,000. There are two reasons:
The first statement can be confirmed or disproved by a technical analysis of the cryptocurrency market, but there is not enough additional information for the second.
The market capitalization of altcoins (ALTCAP) does hold nearly $605 billion of resistance. Although ALTCAP has risen above it several times, it didn’t develop above this area.
However, the daily RSI has broken through the bearish divergence trendline (green line). Such a breakout often precedes significant reversals into a bullish trendline. As a result, ALTCAP will move higher towards the $680B resistance area. If not, ALTCAP could fall back to the $518B support area.
There are also those who argue that bitcoin will test the $10000-$11000 area because there is a CME price gap that needs to be filled. The gap refers to the difference between the closing price of bitcoin futures on the Chicago Mercantile Exchange (CME) on Friday and the opening price on the following Monday.
We previously reported that Hong Kong has allocated another $50,000,000 to the crypto industry.
Forex8 months ago
Forex Today: the dollar is gaining strength amid gloomy sentiment at the start of the Fed’s week
Forex4 months ago
Unbiased review of Pocket Option broker
World5 months ago
Why are modern video games an art form?
Forex8 months ago
How is the Australian dollar doing today?
Cryptocurrency8 months ago
What happened in the crypto market – current events today
Stock Markets3 months ago
Amazon layoffs news: company announces record layoffs
Stock Markets8 months ago
Morgan Stanley: bear market rally to continue
Forex7 months ago
Dollar to pound sterling exchange rate today: Pound plummeted to its lowest since 1985