Bitcoin falls in price after Binance's multi-billion dollar fine

Binance's fine has collapsed bitcoin
  • Jonathan Rowe
  • 23.11.2023

The price of bitcoin fell slightly after the announcement of a multi-billion dollar fine in the United States against the world's largest exchange platform Binance. But in a weekly comparison, the queen of virtual currencies is still showing positive dynamics.

Bitcoin was trading around $36,600 at 3 p.m. on Wednesday, down 0.77% over the past 24 hours. Moments after the verdict against Binance was published, the price fell back to around $35,650. However, the benchmark cryptocurrency has gained 1.43% in the past seven days. Thus, its market capitalization increased by $17 billion to reach $714 billion.

Changpeng Zhao, the founder and head of Binance, resigned as part of a global agreement with US authorities. "I made mistakes and must be held accountable for them," Changpeng Zhao, known in the cryptosphere under the pseudonym "CZ," wrote on his X account (formerly Twitter).

"By failing to implement anti-money laundering measures, Binance allowed a wide range of criminals to trade on the platform," the Treasury Department said, criticizing the platform for failing to take measures to prevent transactions by groups such as the Islamic State, al-Qaeda and the armed wing of Hamas.

Binance was also fined about $4.3 billion. The now ex-CEO will have to pay $50 million and will not be able to hold any position in the company for three years with a probationary period. He will be replaced at the head of Binance by Richard Teng, who has so far been the head of the local markets division.

However, he will be able to retain a controlling stake in the platform. According to the latest ranking of the richest people in the world, compiled by Bloomberg, the Canadian of Chinese descent ranks 68th place, and his personal fortune is estimated at $ 23.5 billion.

Many market participants were relieved by the outcome of the proceedings, believing that the crypto sector can now move forward again. Competitor Coinbase, in particular, called for "proactive regulation and clear laws" for the sector.

Now that the uncertainty surrounding the world's largest cryptocurrency exchange has dissipated, a growing number of investors expect bitcoin-based exchange-traded funds (ETFs) to start popping up in the US. They should make it easier for institutional and private investors who have so far been reluctant to mess with the unregulated market to access cryptocurrencies.

Bitcoin's main competitor, Ether, also recovered after a brief decline and was trading around $2033. Unsurprisingly, the fourth cryptocurrency on the Binance network by market capitalization saw a slightly steeper decline, falling 9.0% to $233.50.

The market value of all approximately 11,000 cryptocurrencies listed on specialized portal CoinGecko was about $1.451 billion, up $28 billion from a week earlier. Bitcoin's dominance remains stable, with a market share of almost 50%.

 

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