In a press release This past June 6, the NGO Bitcoin Argentina has expressed its rejection of the lawsuits filed by the Securities and Exchange Commission (SEC) against the Binance and Coinbase platforms.seeking to provide clarity to users.
The NGO Bitcoin Argentina has expressed its opinion on the effects and scope that the lawsuits filed by the United States SEC could have against Binance and Coinbase, the two main centralized exchange platforms for crypto assets that operate in that country.
“These lawsuits represent further blows to the crypto economy that may or may not have short-term negative effects on crypto asset markets, but in no case are they related to the operation of Bitcoin or other decentralized systems Blockchain-based”, the NGO has indicated through the statement.
However, they have also clarified that:Unlike other recent cases related to the insolvency of certain platforms, These lawsuits are directed exclusively at challenging potential regulatory breaches by Binance and Coinbase. of the United States, and are yet another example of the hostile policy of the authorities towards crypto-asset exchange platforms that operate in their territory. It is likely that a part of the market and possibly companies have already taken into account this risk, which has been anticipated by the migration of other service providers in that country until clearer rules are established. In short, we will have to wait to see the effects on the markets”.
They state that it is common to resort to centralized exchange services. The reasons are various, but remember that: “the crypto assets stored there are managed by third parties and are subject to credit, technological, moral risks and to the laws in force in the countries in which they operate, among others”.
Despite this, they have emphasized that “Bitcoin and Blockchain-based decentralized systems do not depend on or need exchanges or intermediaries to function with total reliability and security.. It is important that users learn to have the direct and independent control of your crypto assetssince only the possession of the private keys operating directly on the Blockchain ensures that they enjoy the benefits and minimize counterparty and regulatory risks”.
They point out that the contribution of “Blockchain to society consists of giving us the possibility of transmitting and saving records of value, and doing it in a private, immutable, reliable, transparent, secure and very low-cost way.”.
Effects on the market
The position of the NGO is clear in rejecting these actions by the National Securities Commission of the United States. As was to be expected, the price of bitcoin suffered a sharp drop when the news broketaking bitcoin from 27 thousand dollars to touch a floor of 25 thousand dollars.
Bitcoin price from June 2 to 8, 2023 – Source: CoinMarketCap
The legal actions taken against both exchanges, caused users to leave Binance and Coinbase en masse fearing that the situation will worsen.
This has benefited decentralized exchangesas we have announced here in Cointelegraph in Spanish with a increase over 400% based on on-chain data.
The price of bitcoin is found currently fluctuating between 26,100 and 26,700 dollars, with an evident tension and with many users waiting for what can happen with both exchanges.
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