You have probably heard that Binance, the world's largest cryptocurrency exchange, is currently facing a lawsuit from the US CFTC for violating US derivatives laws by offering its derivative trading services to US customers without registering with the appropriate market regulators. The lawsuit alleges that BINANCE failed to implement adequate customer identification and allowed American customers to bypass restrictions on trading certain products. Binance has responded to the lawsuit, arguing that US law does not govern their platform because they are stationed in Lithuania, but this argument has been met with skepticism.
The Binance lawsuit has already had significant impacts on the company. Binance's market share has hit its lowest level since November, following the end of its zero-fee trading and the CFTC lawsuit. The company's deal to purchase Voyager Digital$1 billion has also been temporarily halted after the US government requested an emergency stay. Australia prohibiting the company's operations in the country. The Binance lawsuit is seen as a significant moment in the regulation of cryptocurrency, as it could impact how centralized exchanges go about their business in the future.
What should we expect?
It is difficult to predict the outcome of the lawsuit. If the CFTC is successful, Binance could face significant fines and may be required to change its business practices. Binance could also be required to register with the CFTC or other regulatory bodies in the US. Additionally, the lawsuit could lead to increased regulation of cryptocurrency exchanges and greater scrutiny of their practices. Some have suggested that the lawsuit could even lead to the delisting of Binance from US exchanges or a decline in the use of Binance by US customers. However, it is important to note that the outcome of the lawsuit is still uncertain and any potential impacts remain speculative.
While investors should always be sceptical regarding centralised exchanges, it is important to mention that you should primarily store your hard-earned crypto on an external wallet that is not connected to the internet. With many exchanges collapsing as well as implosions in the US banking sector, it is better to be on the safe side. Whether following the decision of this lawsuit the crypto market would crash remains to be seen, however it will pose to be a lucrative buying opportunity.
Opportunity
On a positive note, Trust Wallet has added an exchange feature within the app. This will allow users to sell their crypto without sending in to a centralised exchange. Trust Wallet has a native token: TWT, which is a massive opportunity right now. Just remember what happened to BNB token. TWT currently has a market cap of $516 million, while BNB token $50 billion(You can buy TWT token on Bybit)Just do the maths and see the potential. While it is true that the two tokens are a bit different, overall idea is the same. So if Trust will decide to implement same functionalities for TWT holders, this will drive the price of it to the moon.
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Crypto Market Price Statistics (as of 06/04/2023):
- Cryptocurrency market cap: $1,184 trillion
- BTC dominance:
- ETH dominance:
- BTC Price: $28,057
Provided by: Coinmarketcap
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