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Binance Secures Approval to Invest US Customer Fiat Funds in US T-Bills, BNB Price Surges

Jul 23, 2024 #仮想通貨
Binance Secures Approval to Invest US Customer Fiat Funds in US T-Bills, BNB Price Surgesコインチェーン 仮想通貨ニュース

Binance gains court approval to invest US customer fiat funds in US Treasury Bills, leading to a notable recovery in the price of Binance Coin (BNB).

Points

  • Binance receives court approval to invest customer fiat funds in US T-Bills.
  • The approval allows BAM to hire third-party investment advisors.
  • Binance must maintain USD liquidity and amend terms of use.
  • Court decision follows a $4.3 billion settlement with the US government.
  • BNB price rises above 200-Day EMA, indicating potential further gains.

Binance has received court approval allowing it to invest customer fiat funds into US Treasury Bills (T-Bills) after a year of heightened scrutiny of Binance’s operations in the United States. The decision has resulted in a notable price recovery for the exchange’s native token, Binance Coin (BNB), pushing it toward the $600 level.

Court Grants Relief to Binance BAM Subsidiary

A court filing reveals that BAM Trading Services and BAM Management US Holdings, collectively known as BAM, filed a motion seeking relief from a consent order. The court, upon consideration of the motion, granted the requested relief.

As a result, Binance’s US subsidiary, BAM, is now authorized to hire third-party investment advisors to manage corporate assets, paving the way for BAM to invest client fiat funds in US Treasury Bills. Under the court-approved arrangement, BAM can invest certain customer fiat funds, currently held at BitGo, in US Treasury bills on a rolling four-week basis. However, to ensure compliance, BAM is prohibited from involving any third parties, including Binance Entities, in these investments.

Notably, BAM must maintain sufficient USD liquidity on its platform to honor customer fiat withdrawal requests during the investment period. Additionally, BAM is required to amend its terms of use and provide appropriate notice to customers, aligning with the authorized investment activities.

Compliance Journey Continues

Interestingly, as part of the court’s decision, BAM is now permitted to custody assets with and transfer assets to wallets provided by non-affiliated third-party custodians located in the United States. To maintain control over customer assets, BAM Trading officers and employees based in the United States will solely direct and manage wallets’ private and administrative keys, as required by the court. All transfers and withdrawals will require approval from both BAM Trading and the respective third-party custodian. Importantly, the Binance Entities will not have possession, custody, or control over any assets held in wallets provided by the third-party custodians.

The court approval comes after Binance’s agreement in November to pay a settlement of $4.3 billion to the US government. This settlement included a forfeiture of $2.5 billion and a fine of $1.8 billion. As part of the agreement, the former CEO, Changpeng Zhao (CZ), faced charges of violating the Bank Secrecy Act and agreed to step down from his position. CZ is currently serving a four-month sentence.

BNB Price Breaks Above 200-Day EMA

Currently trading at $597, BNB’s price has risen over 5% on the news, after dropping as low as $455 on July 5. However, over the past two weeks, the token has seen significant gains in line with the overall market recovery. In the seven- and fourteen-day time frames, BNB is up 12% and 20% respectively, coupled with a 47% increase in trading volume over the past few days to $1 billion, according to CoinGecko data. Despite this, the token is still down 17% from its all-time high of $717 set on June 6th.

Adding to the bullish momentum, BNB has surpassed the 200-day exponential moving average (EMA), which is marked by the yellow line below the current price on the BNB/USD daily chart below. Whenever the token trades above this key indicator, further price appreciation follows as the line is a notable support for its price. Nonetheless, BNB will encounter resistance walls at the $610, $633, and $675 levels in the event of a continuation of the current price recovery.

Beincrypto

解説

  • The court approval for Binance to invest US customer fiat funds in US Treasury Bills marks a significant step in the exchange’s compliance journey. This decision not only enhances investor confidence but also aligns Binance with regulatory expectations, ensuring better management of customer assets.
  • The requirement for BAM to maintain sufficient USD liquidity and amend its terms of use reflects the emphasis on transparency and customer protection. These measures are crucial for building trust and maintaining a robust operational framework.
  • The notable recovery in BNB’s price, driven by the court approval and overall market recovery, highlights the positive market sentiment towards Binance. Surpassing the 200-day EMA is a strong bullish signal, indicating potential for further gains, although resistance levels at $610, $633, and $675 should be monitored.
  • The broader implications of Binance’s compliance efforts and strategic investments underscore the importance of regulatory alignment in the crypto industry. As exchanges navigate complex regulatory landscapes, proactive measures and adherence to legal requirements are essential for long-term success and market stability.
  • Overall, Binance’s recent developments and BNB’s price performance underscore the dynamic nature of the crypto market, where regulatory decisions and market conditions interplay to shape investor sentiment and asset valuations.

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