Is a recovery rally on the way as Cyprus approves Binance registration?

• Binance Coin price, much like many other major cryptocurrencies, has consolidated for more than a month.
• Cyprus became the fourth European nation to approve Binance’s registration as a Crypto Asset Services Provider (CASP).
• Earlier this year, France, Italy and Spain also allowed the registration of Binance to provide services pertaining to digital assets.

Binance, being the biggest cryptocurrency exchange on the planet, has been a powerful factor in Binance Coin price action. But the last couple of months have been a bane for the crypto market, leaving BNB stuck in sideways momentum. Even so, Binance’s expansion is noting no slowdown as the crypto exchange just tapped another major country in the European Union.

Binance comes to Cyprus

On Thursday, Binance announced that its Cyprus arm, Binance Cyprus Limited, has been granted Class 3 registration as a Crypto Asset Services Provider (CASP) by Cyprus Securities and Exchange Commission (CySEC).

This registration would allow the citizens of Cyprus to engage in the services offered by Binance. These services include spot trading, custodian, staking, and card services. Since the crypto exchange complied with CySEC’s anti-money laundering and counter-terrorist financing (AML/CTF) rules, it was granted registration on October 20.

Binance CEO CZ commented on the approval saying,

“Binance has some of the most thorough AML and CTF compliance policies in the industry. Recognition of the efforts we have made to be on the leading edge of compliance that our registration in Cyprus represents is testament to that.”

The approval marks Binance’s fourth registration within Europe, as earlier this year, it also gained digital asset service provider licenses from France, Italy and Spain.

Binance Coin makes no move

Despite the announcement, BNB price noted no discernable movement throughout the intra-day trading hours. Changing hands at $272.8, the altcoin has been stuck in consolidation for two months now. Even though it is maintaining a 10-month-long downtrend line as support, it recently lost the support of a shorter-term uptrend line. 

In order to regain that, BNB will have to rise back up and retest $331, which acted as a critical support level until May this year.

However, the lack of divergence on Bollinger Bands shows that there is not a lot of volatility in the market currently. This leaves BNB with very low buying pressure, making an uptrend a farther reality.

BNB/USD 1-day chart

If, down the line, BNB’s price notes an upswing, $331 will be its next target, but if the price fall, the 10-month-old downtrend will be BNB’s next support.