Bitcoin derailed as Binance gets kicked out of the United States, CZ in prison?
Binance pays a fine of more than $4 billion, CZ resigns, the platform will disappear from the United States
Regarding the reasons for this decline, it should be noted that it directly responds to the announcement of a settlement of 4.3 billion dollars in the context of legal proceedings initiated in the United States against the crypto platform Binance for money laundering. money and violations of securities laws.
However, it is not this regulation that has weighed on Bitcoin and other cryptos, but rather the fact that the agreement between Binance and the DoJ implies that the crypto platform must completely exit the US market, and that its CEO Changpeng Zhao (CZ) resigns as CEO.
Furthermore, CZ remains prosecuted in his personal capacity, although he was released on bail in the amount of 175 million dollars, for a judgment scheduled for February. It is therefore not excluded that CZ ends up in prison for a more or less long period, although an amicable settlement is also possible, as was the case for Arthur Hayes, former boss of BitMex, in a similar case.
However, it must be remembered that Binance is the largest crypto platform in the world in terms of trading volume, and is therefore of “systemic importance” on the scale of the cryptocurrency market, which explains the clear reaction of the market .
We will also recall that yesterday was also the occasion for the announcement of proceedings by the SEC, the US stock market watchdog, against Kraken, the third crypto platform in the world, confirming that regulators have every intention of continue to put obstacles in the way of the development of the digital assets market.
Technical thresholds to watch for Bitcoin in the short term
From a technical point of view, we note that although the return of BTC below $37,000 weakened the positive bias, it did not cancel the uptrend, as seen on the daily chart below.