Cryptocurrency exchange Binance faces challenges from the SEC’s (Securities and Exchange Commission) intensified scrutiny of the crypto market in the U.S. and growing regulatory headwinds globally. In response to the mounting regulatory constraints, Binance has opted to withdraw its application for a license in Abu Dhabi, as reported by Reuters.
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The withdrawal pertains to BV Investment Management, a unit of Binance, which formally retracted its license bid with Abu Dhabi’s financial regulatory authority. The initial application for the license was submitted a year ago, which would have authorized it to manage a collective investment fund.
Against this backdrop of regulatory uncertainties, Binance’s founder, Changpeng Zhao, recently resigned from his position and admitted guilt for violating U.S. anti-money laundering laws. As the company grapples with these challenges, let’s examine the performance of Binance Coin (BNB-USD).
Why is BNB Price Falling?
The ongoing regulatory headwinds have weighed on Binance Coin, which is trading in the red on a year-to-date basis. While BNB-USD has underperformed, two major cryptocurrencies, Bitcoin (BTC-USD) and Ethereum (ETH-USD), are up approximately 162.52% and 99.10%, respectively, year-to-date.
