How will Binance’s struggles to find banking partner in the U.S. impact BNB
- Binance.US was struggling to secure a banking partner, causing operational challenges for the exchange.
- BNB was experiencing a minor decline, with investors betting on further drops in price.
Binance.US, the American branch of the popular Binance Exchange, was facing a significant roadblock in its operations as it struggled to secure a banking partner. This latest setback adds to a series of recent obstacles the exchange has encountered.
Read Binance Coin’s [BNB] Price Prediction 2023-24
U.S banks refuse Binance funds
According to an 8 April report from Wall Street Journal, Binance.US has been encountering difficulties finding a banking partner to handle its clients’ funds. The exchange has been struggling to establish a new bank partner to facilitate the transfer of fiat currency in and out of its platform for its clients.
The unavailability of a direct banking partner has impacted Binance.US customers. In a recent update, the exchange stated it was shifting to new banking and payment service providers over the coming weeks. However, it also mentioned that the transition would temporarily impact some of its U.S. dollar deposit services.
Temporary banking solution
As reported by the Wall Street Journal, Binance.US has been using the services of Prime Trust LLC, a FinTech firm specializing in cryptocurrency services, to store its customers’ cash. According to a spokeswoman from Prime Trust, any funds received from Binance.US clients are kept in the company’s network of banking partners.
Binance Holdings Ltd., the global affiliate of Binance US, was recently sued by the Commodity Futures Trading Commission. The suit was for allegedly violating regulations and rules designed to prevent financial crimes in the U.S.
Although Binance denied any wrongdoing, this legal action may have made securing banking partners more challenging for Binance.US. Additionally, the regulatory landscape for cryptocurrency in the U.S. has become more complex in recent times, which could have also contributed to the difficulties faced by the exchange in finding a banking partner.
How did BNB react?
The daily timeframe chart of BNB indicated that it has faced challenges over the past few weeks. As of this writing, BNB was trading at approximately $310, experiencing a minor loss of less than 1%.
While BNB was still trading above its short and long Moving Averages (yellow and blue lines), it may dip below these averages if the decline continues. Moreover, the current trend for BNB was bearish, as indicated by the Relative Strength Index (RSI) line.
How much are 1,10,100 BNBs worth today?
In addition, at the press time price level, investors anticipated a further decline in Binance Coin. According to the funding rates data from Coinglass, the dominant positions on most exchanges were short, suggesting that investors were bearish about BNB’s outlook.
Although there were some long positions, the shorts carried the majority of the market sentiment as of the time of writing.