Could a crypto world exist without Binance? Many analysts and traders are weighing in on this subject given the world’s largest digital currency exchange is facing a huge lawsuit from the Securities and Exchange Commission (SEC).
Could Binance Come to an End?
Not long ago, the SEC filed charges against Binance and claimed the company had broken securities laws for many years. It also said Binance had commingled company funds with those of customers. The exchange also faced another lawsuit from the Commodity Futures Trading Commission (CFTC).
Some analysts are not convinced that any of this is real. Boris Povar, for example, is the general director at EYWA, a cross-chain solution that brings blockchains together.
He said that this is all part of an ongoing witch hunt headed by the SEC, and it’s all an attempt to soften the strength of crypto in America. He also compared the actions to those of China in mid-2021 when the country announced that all crypto mining would be illegal. He said:
This, to me, looks like nothing more than market manipulation, like the ban on cryptocurrencies in China in the past market cycles. Even if Binance.US closes, it won’t close Binance. This will accelerate Binance’s transition to a fully decentralized structure, which it has been doing for a long time, since the establishment of Binance DEX on the BNB Beacon Chain and launching of the BNB Smart Chain, plus investing in infrastructure projects such as Trust Wallet, Injective Protocol, and others. That is the future pillar of a decentralized Binance. It will gradually be reborn as a decentralized exchange (DEX) and will become stronger, I think. Any closure of the American market for Binance will lead them to develop other markets in Asia and even France.
This sentiment was echoed by Hedi Navazan, head of compliance and regulatory affairs at Crystal Blockchain in Amsterdam. He said the entire world has taken notice of the lack of regulatory clarity in the U.S., and that the nation is being given close attention due to its ongoing regulation-through- enforcement tactics. She said:
The entire crypto industry has been increasingly vocal about the lack of transparency in the regulatory approach from the U.S. Crypto businesses are moving offshore to countries that are pursuing innovation in regulation.
Billions in Fines?
Still, however, there are some that say the situation surrounding Binance is growing worse for the company and the man (Changpeng Zhao) in charge of it. Vladislav Garmash – founder and CEO of the Marlerino Group in Dubai – said:
I have studied this lawsuit and the analysts’ comments on this issue well. If everything goes according to a bad scenario, Binance.US will not be allowed to exist. CZ will be strangled constantly if so. Billions of fines are waiting for CZ.
