According to recent developments, Binance is having problems in Belgium, facing the possibility of withdrawals due to new government regulations. As pressure continues to mount on the world’s largest exchange, what consequences will this have for BNB?
Binance’s conundrum in Belgium
Belgium’s top regulator, the Financial Services and Markets Authority (FSMA), has issued a firm order to the exchange. They demanded an immediate halt to services to local customers, according to an official statement released on June 23.
Binance has engaged in providing crypto-to-fiat trading services, as well as custodial wallet services for cryptocurrencies from countries outside the European Economic Area.
According to regulators, the services provided by Binance violate the existing ban.
Interestingly, this development resembles a previous incident the exchange faced at the beginning of the month. Binance made a similar announcement regarding the suspension of services in the Netherlands and Cyprus, which are also part of the European Economic Area.
Furthermore, there have been rumors about possible investigations by French authorities into Binance’s operations. They were quick to clarify that these were just routine inspections, though.
How is BNB reacting to recent developments?
A closer look at the daily time frame chart shows that June was quite difficult for BNB. The BNB price has dropped significantly, accompanied by the appearance of the Death Cross during the same period.
As of press time, BNB is trading around $237.25, down more than 2% in 24 hours. However, despite the positive movement, the overall trend remains bearish.
Additionally, the moving average convergence divergence (MACD) is positioned above zero at the time of writing, indicating a positive trend. However, the general trend is still down.
Because the Relative Strength Index (RSI) shows a bearish outlook for BNB. The RSI line hovers just above 40, indicating a lack of strong upward momentum.
Furthermore, the Long Moving Average (blue) is resistance at around $299, which was previously a support area before the BNB drop.
BNB sentiment remains positive
Despite BNB’s bearish trend, there seems to be positive sentiment surrounding it. According to data from Coinglass, funding rates maintain positive values on several exchanges.
At the time of writing, the funding rate remains positive, implying that traders are anticipating a possible future price increase.
Funding rate reveals the market sentiment of traders, positive shows that many traders are taking Long positions or buying BNB contracts, signaling a bullish price outlook.
The situation surrounding Binance remains uncertain as they try to overcome legal challenges. To date, there is no guarantee for the future of the Belgian exchange and their response to these directives will certainly hinder operations and possibly BNB as well.