As an experienced financial analyst with a background in cryptocurrency and regulatory compliance, I have closely monitored Binance’s ongoing journey to navigate the complex US regulatory landscape. The recent court approval granting BAM, Binance’s US subsidiary, permission to invest customer fiat funds into US Treasury Bills is a significant milestone for the exchange and a clear indication that they are making progress towards full compliance with US regulations.
Court permission granted to Binance for investing client fiat funds into US Treasury Bills (T-Bills) following intensive examination of Binance’s American operations during the past year. This development has significantly contributed to Binance Coin (BNB) price surge, bringing it closer to $600 mark.
Court Grants Relief To Binance BAM Subsidiary
According to a court document, BAM (which includes BAM Trading Services and BAM Management US Holdings) asked the court for an exemption from a previous agreement. After reviewing the request, the judge granted BAM the desired exemption.
Due to recent developments, Binance’s American affiliate, BAM, has been given the green light to bring on board external investment advisors to oversee its corporate holdings. This newfound ability opens up opportunities for BAM to put their clients’ fiat funds into US Treasury Bills as an investment option.
As a researcher examining this court-approved arrangement, I can explain that under the agreed terms, BAM has the authority to invest a specified portion of their customers’ fiat funds, which are currently deposited with BitGo, into US Treasury bills on a regular four-week basis. To maintain compliance, however, BAM is strictly forbidden from engaging any third parties, including Binance Entities, in these investment activities.
Significantly, BAM needs to ensure a adequate supply of US dollars on its platform to process customer fiat withdrawal demands throughout their investment tenure. Furthermore, it’s essential for BAM to update its terms of agreement and inform clients accordingly, in accordance with the permitted investment practices.
Compliance Journey Continues
The court’s ruling allows BAM to hold assets in and move funds to US-based custodian wallets that are not affiliated with the company.
In order to retain authority over customers’ assets, BAM Trading’s US-based representatives will be exclusively responsible for managing and directing the private and administrative keys of the wallets, in accordance with court orders.
Both BAM Trading and the involved third-party custodians must grant approval for all funds transfers and withdrawals. Notably, Binance Entities will neither hold nor manage any assets stored in wallets supplied by third-party custodians.
After reaching an accord with the US government in November, Binance has secured court approval for the payment of a $4.3 billion settlement. This amount consists of a $2.5 billion forfeiture and a $1.8 billion penalty.
Under the terms of the accord, Changpeng Zhao (CZ) was accused of breaching the Bank Secrecy Act and chose to relinquish his CEO role in compliance. Presently, CZ is undergoing a four-month imprisonment.
BNB Price Breaks Above 200-Day EMA
At present, BNB is priced at $597. Following recent positive news, its price has surged by more than 5 percent, having reached a low of $455 on July 5. Yet, over the last fortnight, the token has experienced substantial growth in tandem with the broader market rebound.
In the last two weeks, Binance Coin (BNB) has experienced a rise of 12% within the first time frame and a significant jump of 20% in the second one. Additionally, there’s been an impressive surge in trading volume, reaching approximately $1 billion as of recent data from CoinGecko. However, this growth comes with BNB being 17% below its all-time high price of $717, which was hit on June 6th.
Boosting the positive trend, Binance Coin (BNB) now lies above its 200-day exponential moving average (EMA), denoted by the yellow line under the BNB/USD chart displayed below.
When the BNB token surpasses this significant marker, its price tends to climb higher due to the indicator acting as a robust support. However, obstacles may arise for BNB at the $610, $633, and $675 price points if the ongoing price uptrend persists.
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2024-07-20 04:35