Bitcoin dropped 4% within hours because of news regarding Binance receiving order to shut down operations.
Yesterday local japanese media outlet Nikkei reported that Binance, the largest cryptocurrency exchange by trading volume, received an order to shut down operations in Japan for failing to register with the Financial Service Authority (FSA).
The CEO of binance immediately responded through a tweet accusing the media outlet of irresponsible journalism:
As soon as news spread away, bitcoin’s price fell from the $9000 level to $8500 within hours.
Today, CEO of Binance tweeted that they did receive a letter from the FSA:
I appreciate the fact that they are being transparent and engaged with the audience and also the following tweet:
I have to go with CZ’s tweet that usually negative news in the crypto market turn out to be positive in the long term.
I guess that the news just came as FUD and this will be sorted out without doubt as they have been keeping in touch with the FSA for a long time to try to comply with their demands.