[Bitcoin Now] Sharp Drop to 63 Million KRW Amid US Authorities' Investigation of Binance Exchange

Over 10% Drop in Two Days from Around 71 Million Won
Binance Denies 'Baseless Rumors'... "Considering Formal CFTC Registration"

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[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin has plummeted to the 63 million won range. The news that U.S. financial authorities have launched an investigation into Binance, the world's largest cryptocurrency exchange, appears to have acted as a negative factor.

According to the domestic cryptocurrency exchange Upbit, as of 1:45 p.m. on the 16th, Bitcoin recorded 63,645,000 won, down about 1.3% from the previous day. This is a sharp drop of about 11% in two days from the high of 71,450,000 won recorded on the 14th.

Bitcoin prices seem to have plunged following news that U.S. financial authorities are investigating Binance, the world's largest cryptocurrency exchange. According to U.S. economic media Bloomberg on the 12th (local time), the U.S. Commodity Futures Trading Commission (CFTC) has begun investigating suspicions that Binance provided derivative trading services to U.S. residents without regulatory approval. Bloomberg analyzed that this investigation is a sign that U.S. financial authorities are moving to regulate the cryptocurrency market and that Binance may face strong regulations in the future.

Binance denied this. Changpeng Zhao, CEO of Binance, said on the 12th on the voice-based social networking service Clubhouse, "We comply with U.S. laws and protect Binance users from money laundering," adding, "We plan to actively cooperate with regulatory agencies going forward." On the 11th, Binance also explained in an official statement that "U.S. residents are blocked from derivative trading services."

Binance is expected to register with the CFTC. Max Baucus, Binance policy advisor and former U.S. ambassador to China, explained in an interview with Bloomberg TV on the 13th, "Binance is currently considering registering with the CFTC," adding, "We already comply with relevant regulations, and this is a decision for simple business purposes."

Meanwhile, news of cryptocurrency regulations by the Indian government also appears to have acted as a negative factor. On the 15th (local time), U.S. economic media CNBC reported that the Indian government is pushing to introduce a regulatory bill that bans even holding cryptocurrencies. If this bill passes, fines will be imposed even for trading cryptocurrencies. Those who already hold cryptocurrencies will also be fined if they do not dispose of them within six months. According to industry estimates, there are currently 8 million cryptocurrency investors in India, holding cryptocurrencies worth 100 billion rupees (about 1.56 trillion won).

This content was produced with the assistance of AI translation services.