Binance exits Russia: What’s next for the world’s largest crypto exchange?
- Binance said it was selling its Russian division, citing compliance incompatibility.
- The decision underscored rising concerns over regulatory pressures.
Binance [BNB] is currently going through a rough phase characterized by regulatory pressure especially in the U.S. However, that pressure is not just limited to the West judging by the latest development.
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The exchange has announced that it is selling its Russian division. According to the official announcement, Binance has secured an agreement to sell to CommEX for an undisclosed amount.
Binance also revealed that the decision to offload its Russian business was largely due to compliance-related issues. In other words, the world’s largest crypto exchange is bowing down to regulatory pressure.
Binance has entered into an agreement to sell the entirety of its Russia business to CommEX (https://t.co/JJRKCo9coA).
To ensure a smooth process for existing Russian users, the off-boarding process will take up to one year. All assets of existing Russian users are safe and…
— Binance (@binance) September 27, 2023
It is also interesting to note that the U.S. Justice Department is conducting an inquiry into whether Binance allowed Russian customers to access the exchange in violation of the sanctions related to the country’s invasion of Ukraine.
The DoJ investigation is in addition to the clampdown from the Securities and Exchange Commission. A situation that could potentially lead to Binance exiting the U.S. market.
Meanwhile, Binance also revealed that it will facilitate a smooth transition for its Russian users.
While the decision to sell might be a setback for Binance’s plan to dominate the crypto market, the exchange is confident about its prospects. This is courtesy of the fact that it already has a presence in more than 100 countries.
Nevertheless, Binance’s current woes still risk denting investor confidence, especially for BNB. But that does not seem to be the case.
BNB sentiment improves despite Binance’s regulatory pressures
One would expect the Binance Smart Chain (BSC) native cryptocurrency BNB to be caught in the cross-hairs of the ongoing regulatory woes.
However, that has not been the case according to its on-chain metrics. Its weighted sentiment metric has been on an overall upward trajectory since the start of September, and is now at its highest level in the last 30 days.
BNB also maintained healthy on-chain volumes in line with the improving sentiment. The volume metric just pushed to its highest point so far this month.
But how has this affected its price action? Well, despite the improving sentiment, BNB has so far managed to avoid more downside. This suggests that buying pressure has been growing but not adequate enough for a large bullish spike.
Read about BNB’s price prediction for 2024
BNB has managed 5% upside from its lowest price point so far this year. It exchanged hands at $215 at press time. This could be a sign that the market is still fearful, hence the limited upside.
A quick glance at BNB’s price chart reveals that its RSI has ascended back to its mid-level. Meanwhile, the MFI confirms liquidity inflows. This coincides with the improving sentiment. A sign that there is some accumulation taking place at recent lows.