March 25th, 2018—With all of the commotion going on in the cryptocurrency markets these days, it’s important that we stop and take a look around. In the Weekly Crypto Recap, we’ll focus on one of the biggest stories in the crypto world from the previous week and break down what exactly is going on. For the very first recap, let’s take a look at the exchange many in the industry love to use for trading: Binance. The company is gaining a lot of attention in the media lately, but what does it all mean?
Weekly Crypto Recap: the F.U.D.
To start things off, let’s take a look at some of the Fear, Uncertainty, and Doubt (FUD) being spread around.The first real piece of news that broke about Binance was the clamping down by the FSA. The Financial Services Agency (FSA) in Japan purportedly issued a strong warning to the exchange for operating in the country without a proper license. The initial report, first broken by Nikkei, was rather rough on the exchange.
When news first broke, it looked like the exchange could potentially be in big trouble. The fact is, Binance is the single largest exchange by trading volume and is a big influence in the industry. Though the reports appear to be a bad sign for the exchange, there isn’t much agreement on what actually happened. In fact, the CEO of Binance, Changpeng Zhao, even went to Twitter to take issue with the reports, claiming them to be misleading and not an accurate representation of what’s actually going on.
The FUD for the week is pretty simple: FSA cracks down on world’s largest exchange; bad news for the cryptocurrency markets.
Weekly Crypto Recap: the Facts
Contrary to a lot of the negative attention Binance has been receiving, there is some good news. Actually, not “some” good news, but an important amount for both Binance and other crypto businesses. In what’s likely going to be the biggest announcement for the exchange, Binance is looking to head to Malta.
While the exchange based in Hong Kong is not in threat of being shut down by Japanese regulators, it is looking to expand business. Malta has been openly inviting to not only Zhao and Binance, but to the crypto world more broadly.
In another Tweet from the Prime Minister of Malta, the PM formally welcomed Zhao and Binance to the country:
Malta is on a path to potentially create the next Silicon Valley for the cryptosphere. With the move, Zhao also announced the future expansion of the popular exchange to include fiat-to-crypto transactions. In a recent sit down with Bloomberg, Zhao spoke very highly (read: bullish) about the move and the intentions of the exchange in the future.
If Binance successfully implements a new option for investors to purchase cryptocurrencies with fiat (US dollars, euros, etc.) directly, we are likely to see an even larger influx in users. Along with that increase in Binance users, the markets could potentially see more interest grow in the markets in general. With less hoops to jump through, it’s easier to get those who are interested into the markets. New investors means more funding, and more funding means higher liquidity. Regardless of how you look at it, more people in the market is good news for investors.
- No, Binance is not being pushed out of Japan by regulators
- The Financial Services Agency (FSA) is still engaged in ongoing discussions with Binance
- Malta is opening its doors to not only Binance, but the crypto world at large
- Binance is likely to be rolling out crypto-to-fiat options in the near future
- Not all ‘FUD’ is created equal