Binance U.S. expansion plans put BNB future dubious
“Binance will accredit its cutting-edge matching engine and budget technologies to its US companion BAM to introduce Binance.US, acknowledged by its just recently accepted FinCEN [The Financial Crimes Enforcement Network] enrollment on June 11, 2019,” the exchange said, adding that they’ll share even more details “at a later day.”
At the same time, BNB, which is 7th largest coin by market capitalization, signed up the most significant decline among the major coins in the past one day as the cryptoverse is going over how the growth in the U.S. will undoubtedly affect the coin. At pixel time (06:11 UTC), it’s down by 5%.
Significant cryptocurrency exchange Binance verified it would certainly get in the U.S. market using the partnership with a neighborhood business, BAM Trading Services. Now, one of the primary concerns reviewed is what will certainly occur with Binance Coin (BNB), the native token of the exchange, after the Binance.
Details about BAM Trading Services are scarce. It seems that the business does not have its website while their Twitter account was developed in April 2019 and also has just one tweet as well as it’s regarding their partnership with Binance.
Economist and trader Alex Krüger argue that “Binance might move U.S. users (supposedly 25-30% of total) from binance.com to Binance.US” According to him if there is no BNB on Binance.US, the demand for this coin will go down.
The only good thing here IMO is reduced regulatory/tail risk. That aside, everyone celebrating what for me is quite contrary for $BNB. Now, that does not mean price has to drop.
— Alex Krüger (@krugermacro) June 14, 2019
Others have also asserted their concerns.
Exactly. We still don’t know if BNB will be classed as a security.
— Mati Greenspan (@MatiGreenspan) June 14, 2019
While Binance was not available for instant remark, their CEO, Changpeng Zhao, tweeted earlier that “there will be a few restrictions on Binance.com following this [launch in the U.S.]”
While the exchange is already available in the U.S., by launching a local exchange, they hope to grow their competitiveness.
👆👍👍 I couldn’t/wouldn’t use those exact words, but the reasoning is fitting.
— CZ Binance (@cz_binance) June 14, 2019