On May 13, it became known about inspections of the largest crypto exchange in the world, Binance, by the Department of Justice and the US Internal Revenue Service. Let’s see what happens as a result and how this will affect its own token value.
So, what is known? On the middle of May of this year, an investigation by the DOJ and the IRS against the crypto exchange Binance was launched. State bodies check everything for inconveniencies. The subject of the request is possible money laundering and tax legislation issues. No claims are being filed at this time, only careful examination of the situation for possible problems.
Binance SEO is angry due to the media coverage of the process. He pointed that in fact, Binance supports the American government services against all unscrupulous persons, but the media casts a shadow on the good name of the brand.
The exchange has already clashed with American regulators. Two months earlier, the site was checked by the CFTC. In that case, they conducted a study of the company’s activities because of possible information that American residents trade crypto in the absence of the necessary licenses from the trading platform. Back then, Binance SEO said the same thing about strict adherence to regulations and support for users from all over the world.
Next, Binance invited to the council some several experienced professionals who are called upon to help resolve such issues. They are intended to assist the project in developing safeguards against money laundering and terrorist financing.
Risks for Binance
The start of the process does not mean the end of the exchange or other bad things. The investigation goes to positive results and the Binance will approve that everything is clear with their business. However, there are risks of accusations.
What’s the worst-case scenario? Experts say that Binance will become unavailable for American residents. American regulators are not able to “ban” the exchange worldwide, no matter how much they like it. They can only block her presence within their sphere of responsibility, namely the territory of the United States.
The presence of violations is likely to lead Binance to changes in the structure of the company’s activities, as well as to the payment of fines. This is the most likely outcome of negative options. The full-fledged work of the exchange will continue at the same time.
So far, there are no fears and should not be. This is a common case because US regulators are constantly attacking large companies with due diligence.
Experts cite examples of the largest and most successful companies: Google, Amazon, Facebook, and so on. They were regularly subject to checks and fines but found rapport and compromises that improved the situation for all parties.
How did this affect Binance Coin?
Naturally, the news about government interest dropped the value of the internal BNB token for more than 10%. The lower threshold was the price of 1 BNB worth $ 526. Within 1 day, the price of BNB returned to $ 605.
Some time later, the current situation will not be a problem for the whole market. The main point is that Binance is associated with money laundering processes through crypto, but the situations of this kind are possible anywhere in an uncontrolled mode. The Binance Coin price will continue its way to the highs, and in the future, the fact of the end of this situation with a positive result for Binance will give another additional push to the growth of the BNB price.