Binance Coin (BNB) is the native token for the world’s largest cryptocurrency exchange and things are a bit uncertain right now thanks to some regulatory pressures that are being reported in the digital token press.
The trouble started Thursday (March 22) when news broke that Japanese regulators are looking to put the clamps on the exchange operating in Japan. It appears that Binance as an exchange is not properly registered with the country’s financial services authority (FSA). The news was broken by the Nikkei but Binance CEO was quick to assure traders and other interested parties that things were fine.
In a tweet Binance CEO Changpeng Zhao made it clear that, “Nikkei showed irresponsible journalism. We are in constructive dialogs with Japan FSA, and have not received any mandates. It does not make sense for JFSA to tell a newspaper before telling us, while we have an active dialog going on with them.”
In the wake of the news, surprisingly, Binance Coin only declined 5.54% over the trailing 24 hours. This surprised quite a few people but it appears those who were surprised had not properly appraised the power of BNB.
Over the last 7 days BNB is up 7.25% although it down 3.88% when assessed over the last 30 days. The digital token when assessed over a much longer time horizon is actually doing quite well. Measured over 90 days, BNB is actually up 108.08%.
Looking at the deep market stats we see that BNB has a market cap of $948.77M and a 24hour market volume of $103.41M. Circulation supply is 99.014M which shows that there is a deep involvement for the digital token in the markets.
The big question is whether the digital token will be exposed to turbulence if the exchange proper, becomes affected by regulation. There are multiple scenarios out there for the Binance exchange but one possible outcome is that the exchange gets regulated properly and then scales even bigger with greater confidence. As the CEO of Binance pointed out in Twitter, developers of the exchange are in active dialogue with the Japanese authorities. This suggests that something may be coming out soon which I why many are speculating that the investors and traders are not worried too much about Binance and ultimately, Binance Coin.
For now traders will be watching the price of BNB to see if it will rise or sink based on the fortunes of its parent exchange.