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Binance Comes Under Regulator Scrutiny in Israel

By:
Bob Mason
Published: Feb 18, 2022, 04:56 UTC

Israeli regulators join a growing list of regulators scrutinizing Binance activity. Binance has currently ceased activity and marketing to Israelis in response.

Apple iPhone and Binance logo, with dollars and cryptocurrency.

A sharp pickup in regulatory activity has seen a number of exchanges come under the scrutiny of regulators. A clamp down on advertising in Singapore and the UK had affected a number of exchanges early in the year.

Last week, BlockFi paid a reported $100m penalty after an SEC investigation into its high-yield products. For Binance, however, it has been an even busier start to the year.

Binance Under SEC Scrutiny

This week, crypto exchange Binance hit the news wires once more. On Wednesday, we reported news of the SEC investigating two entities that act as Binance U.S. trading affiliates. The two affiliates, Sigma Chain AG and Merit Peak Ltd reportedly act as market makers, trading cryptos on Binance’s U.S platform. For the SEC, the issue relates to a lack of disclosure, with both entities reportedly having ties with Binance CEO Changpeng Zhao.

This week’s news had followed a number of “run-ins” with regulators in key jurisdictions. Also this week, news of Binance’s new partnership with PaySafe drew comment from the UK Financial Conduct Authority (FCA). Last June, the FCA had ordered Binance to cease all operations in the UK. The order meant that Binance UK users could not make UK Pound transactions. As a fix, Binance has reportedly formed a relationship with PaySafe.

Other recent brushes with regulators include India’s RBI, the Ontario Securities Commission, and the Monetary Authority of Singapore.

Israeli Regulators Join an Ever-Growing List

On Thursday, news of Israel’s Capital Market Authority (CMA) being in dialogue with Binance drew interest. According to Globes, a local news agency, the CMA requested clarification on Binance activities in Israel. Clarifications have reportedly been asked on the type of services it provides to citizens and the licenses under which it operates. According to Globes, Binance has not submitted any license application to allow operating in the country.

As a result of the request for clarifications, Binance has ceased all activities, including marketing to Israelis.

Binance Coin (BNB) Price Action

On Thursday, Binance Coin (BNB) fell by 5.84%. The downside came in response to the rising threat of a Russian invasion of the Ukraine. Finding support at $400, with a day low $400.26 was key to avoiding heavier losses on the day.

At the time of writing, BNB was up by 0.63% to $405. A move through the day’s $411 pivot would support a run at Thursday’s high $431. BNB would need plenty of support, however, for a breakout from the first major resistance level at $423. Barring a broad-based relief rally, BNB would likely fall well short of the second major resistance level at $443. Failure to move through the pivot would bring the first major support level at $392 into play. Barring another extended sell-off, BNB should steer clear of the second major support level at $380.

BNBUSD 180222 Daily

Looking at the EMAs and the 4-Hourly candlesticks (below), the signal has become more bearish. The 50-day EMA has pulled back from the 200-day EMA while narrowing on the 100-Day EMA. A further narrowing on the 100-day through the day would bring a bearish cross and sub-$400 into play.

Near-term, a BNB move back through the 100-day EMA current at $411 levels would support a shift in sentiment. A move back through to $430 levels would bring January’s high $534 into play.

BNBUSD 180222 4-Hourly

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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