The world’s largest crypto exchange Binance is caught up in the FUD surrounding Paxos-issued BUSD and compliance gaps with regulations. Moreover, a recent report revealed that Binance moved $400 million of partner funds to a trading firm managed by Binance CEO “CZ”.
Binance considers ending relationships with U.S. businesses due to regulatory pressure in the U.S. CZ said “We pulled back on some potential investments, or bids on bankrupt companies in the U.S for now.”
Binance in September last year announced auto-converting USDC, Pax Dollar (USDP), and True USD (TUSD) into BUSD. It also removed spot, future, and margin trading with USDC, USDP, and TUSD pairs as a result.
However, US regulatory action against Binance and Paxos-issued BUSD has caused the market cap to drop by $2.6 billion (from 16.1B to 13.5B as of now). Most of it has moved to USDT, with the market cap rising to $70.16.
Meanwhile, Binance has shifted to TUSD stablecoin for trades. Binance minted $50 million worth of TUSD after a recent crackdown by U.S. regulators on the Paxos-issued BUSD.
According to CryptoQuant data, the True USD (TUSD) Inflow for all exchanges was 86 million on February 16 and Binance accounted for over 90% of the TUSD inflow. The exchange inflow and outflow for all exchanges indicate an increase in trading activity in TUSD.
Bitcoin Longs on Binance Rises Amid FUD
According to data by Coinglass, Bitcoin longs on crypto exchange Binance has increased significantly in the last few days. It indicates investors are buying Bitcoin for the long term. The longs increased to 52% against shorts of 48% on Friday.
Moreover, CryptoQuant data indicates an increase in Bitcoin outflow from Binance in the last few days, which caused a massive price rally. However, exchange inflow has also increased which indicates a rise in volatility due to selling pressure amid the rise in Bitcoin price.
Bitcoin price currently trades at $24,187, down 2% in the last 24 hours. The BTC price today hit the $25K level, but the hawkish U.S. Federal Reserve resulted in a selloff.
Also Read: Bitcoin Price Still Bullish To Hit $30K, Predicts On-Chain Data And Crypto Analyst