Binance decision to delist Bitcoin SV could violate laws, possibly lead to regulatory action
The CEO of the Binance cryptocurrency exchange, Zhao Changpeng, recently stated that he would delist Bitcoin SV (BSV) over the assertions by Dr. Craig Wright that he is Satoshi Nakamoto. This has already caused at least one individual to strike back, asserting that Binance is guilty of volume manipulation and should be banned from Russia. However, things could get seriously worse for the exchange if it decides to follow through with its announcement to delist BSV, as it could be a violation of digital asset regulations that govern exchanges and laws against market manipulation in any jurisdictions where Binance is regulated or operates.
According to an announcement by Binance, it has stated that it will delist BSV as of April 22. The company provides a list of reasons why a particular asset could be delisted, but notably does not identify which reason(s) it claims as the supposed basis for delisting BSV (other than its CEO’s personal dislike of Craig Wright). It will have a difficult time proving any of those reasons apply to BSV, given that CZ, as Changpeng is called, has publicly stated that he is removing the asset from Binance because of Wright’s claims to be Satoshi Nakamoto. CZ said in a tweet on April 11, “Craig Wright is not Satoshi. Anymore of this sh!t, we delist!”
The fact that Binance can take such a childish attitude shows that it is not a legitimate company that can be trusted with users’ assets. The exchange, and in particular CZ, has the ability to completely alter the markets on a whim, which would violate laws in jurisdictions around the world. It is also showing that it is willing to abrogate its responsibilities and role as an industry leader and, as such, can’t be trusted. For all the Bitcoin enthusiasts who believe in a digital currency where no one should be in charge or control the system, Binance’s action should be especially alarming.
Founder and owner of CoinGeek.com, Calvin Ayre, commented: “This decision will certainly be reported to regulators in Malta and other governing jurisdictions as this is surely a case of people in trusted positions abusing that trust and playing God with which token gets the most volume and market access. In essence, market manipulation.
The decision to delist Bitcoin SV seems to be based on the fact that they don’t like one scientist that works on the platform. Craig doesn’t own BSV, not does anybody, so this appears to be very unprofessional. An exchange should just want volume of trading not picking which horses it wants to win the race and, as a result, smells of fear and manipulation.”
Fortunately, there are almost 70 other exchanges which list BSV. And another new BSV-based exchange, which understands the importance of responsibility and financial maturity, is using this opportunity to launch early and capture business from Binance. Float SV is a new exchange that is being launched for only tokenized real assets. It is advancing its launch timetable due to the potential illegal acts by Binance and announced on Twitter today that it is moving up its launch to April 19 (before Binance delists BSV on April 22). Its website isn’t ready to be shown to the world, but enthusiasts can follow the company’s progress through its Twitter feed. Currently, according to the feed, “I am an exchange for tokenized real assets. I will look like @OKEx but will make every effort to evolve. #bsv.”
A Medium post on the exchange states, “Float SV will deliver a real asset exchange experience by committing to only list blockchains running Proof of Work SHA256 and real assets such as commodities and currencies. Float SV will not list native tokens of other blockchains nor securities or STOs. A portion of Float exchange revenues will be reinvested into Proof of Work.”
Furthermore, Binance may be suffering additional loss of business due to its CEO having personal animus against Craig Wright. In response to CZ’s first tweet threatening to delist BSV, Twitter account @BitcoinBehemoth posted that “All the BSV miners in our group (150 or so) have moved their funds which make almost quarter of Binance’s total yearly earnings, away from this bucket shop. Happy bankruptcy @cz_binance.” If that is true, Binance is already losing a significant amount of its total yearly earnings.
Exchanges have the legal and moral responsibility to act fairly and neutrally with respect to the assets on their marketplace, and also to conduct operations in accordance with rules and laws of their governing jurisdictions. Falling short of these standards, regardless of the reason, is a testament to the lack of ethical fortitude of the endeavor and, where great amounts of money are concerned, this is a very disconcerting proposition.