<p>In a notable turn of events, Bifinity UAB, a subsidiary of the cryptocurrency exchange giant <a href="https://coinpaper.com/2256/binance-launches-smart-contract-to-refund-xirtam-rug-pull-victims" rel="noopener noreferrer nofollow">Binance</a>, has rapidly ascended to become one of Lithuania&#39;s top corporate taxpayers. In just one year, Bifinity has secured its position among the country&#39;s top five taxpayers, contributing significantly to the nation&#39;s fiscal revenue. This remarkable achievement has not only made headlines but has also sparked discussions about the implications of cryptocurrency companies like Binance on the economies of small nations.</p><h3 id="bifinity-uab-39-s-tax-contribution">Bifinity UAB&#39;s Tax Contribution</h3><p>In 2022, Bifinity UAB made waves in the Lithuanian financial landscape by paying over $45 million in taxes, excluding VAT. This substantial tax payment catapulted the company to the forefront of Lithuania&#39;s corporate taxpayers. The data, revealed by a pseudonymous blockchain researcher known as DeFi Ignas, was based on statistics provided by the national tax service.</p><h3 id="a-remarkable-climb">A Remarkable Climb</h3><p>During the 2022 fiscal year, Bifinity was not only the second-largest corporate taxpayer but also the fourth largest taxpayer overall in Lithuania. The only entities that surpassed Bifinity were Thermo Fisher Scientific Baltics (also known as Fermentas), a well-established producer of biological research reagents, and two state-owned enterprises.</p><p>What makes Bifinity&#39;s achievement even more noteworthy is that it outstripped the tax contributions of the four largest banks operating within Lithuania. This remarkable feat has garnered attention and raised questions about the economic significance of cryptocurrency-related businesses in the region.</p><h3 id="ownership-and-benefits-for-lithuania">Ownership and Benefits for Lithuania</h3><p>DeFi Ignas also pointed out a significant ownership connection between Bifinity UAB and Binance. According to U.S. SEC documents, Changpeng &#34;CZ&#34; Zhao, the co-founder and CEO of the Binance group, is the sole shareholder in Bifinity UAB. This ownership link highlights Binance&#39;s commitment to its Lithuanian affiliate.</p><p>From Lithuania&#39;s perspective, having such a substantial taxpayer like Bifinity incorporated in the country is seen as a positive development. Lithuania offers Binance access to the European Union, allowing the cryptocurrency exchange to efficiently operate and park its financial assets within the region. This arrangement underscores the potential benefits of embracing the cryptocurrency industry for small countries like Lithuania.</p><h3 id="bifinity-39-s-role-and-launch">Bifinity&#39;s Role and Launch</h3><p>Bifinity UAB was launched on 7 March 2023, as <a href="https://coinpaper.com/2098/binance-expands-in-latin-america-with-new-crypto-service" rel="noopener noreferrer nofollow">Binance&#39;s </a> proprietary payments technology company. It plays a pivotal role in facilitating transactions between fiat currencies and cryptocurrencies. Bifinity&#39;s services include powering the payments API and compatibility with major payment operators like Visa and Mastercard. This allows Binance users to seamlessly convert and use cryptocurrencies for everyday transactions.</p><h3 id="regulatory-challenges-and-resilience">Regulatory Challenges and Resilience</h3><p>Despite its impressive financial contributions, Binance and its affiliates have not been without their share of regulatory challenges. The U.K. financial watchdog issued a special warning statement regarding Bifinity&#39;s launch and its initial partnerships with payment operators. Additionally, rumors of reserves insufficiency and an impending regulatory crackdown have led to key officers leaving Binance.</p><p>However, Binance CEO Changpeng &#34;CZ&#34; Zhao has remained confident and advised users to &#34;ignore the FUD&#34; (Fear, Uncertainty, Doubt). To demonstrate its solvency and readiness, Binance has regularly published proof of reserves (PoR), with the latest release on 7 September 2023, aimed at assuaging concerns about its financial stability.</p><h3 id="price-overview">Price Overview</h3><p>Meanwhile, the native token for the Binance ecosystem, BNB, was trading hands at $212.09 at press time, according to CoinStats. This was after the utility token experienced a 24-hour loss of 0.24% during the past day of trading, which pushed BNB’s weekly performance further into the red zone to -1.53%.</p><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/0fdaf08576c045eaa55aba3e53462b84.webp" /></p><p>Price chart for BNB (Source: <a href="https://coinstats.app/coins/binance-coin/" rel="noopener noreferrer nofollow">CoinStats</a>)</p><p>In addition to weakening against the Dollar, BNB also weakened by 0.2% against the market leader Bitcoin (BTC) over the past 24 hours. As a result, 1 BNB token was estimated to be worth 0.00820511 at press time.</p><p>Something to take note of is that the $212 mark is a key price point for BNB, according to 1 analyst. In a post last month, the cryptocurrency analyst and trader that goes by the pseudonym MartyParty stated that BNB has maintained a level above $212 due to specific factors influencing the market. In the post, he revealed that one of these factors is the existence of a BNB collateralized loans offered by Binance, which has a liquidation threshold at $212.</p><p>The initial threshold, which was established at $220 in June this year, has been subsequently revised downward to $212. The analyst&#39;s tweet also highlighted that Changpeng Zhao appears to be implementing strategies to ensure the exchange&#39;s stability. An observation was made where he sold Bitcoin (<a href="https://coinpaper.com/2212/biggest-btc-wallet-revealed-to-belong-to-binance" rel="noopener noreferrer nofollow">BTC</a>) from a wallet linked to TUSD (TrueUSD) and subsequently reinvested the proceeds into BNB.</p><p>This approach seems directed towards averting a potentially dire margin call scenario within the Binance chain. Furthermore, the analyst mentioned the ongoing speculation that U.S. regulatory authorities are strategically decreasing their ownership of BNB, which falls under the purview of the U.S. Marshals.</p><p>This coordinated endeavor might be a deliberate attempt to trigger the liquidation of BNB loans. The Twitter post underscored the possibility that such actions could ultimately create pressure on the Binance CEO, potentially leading him to depart from the industry.</p><h3 id="technical-overview">Technical Overview</h3><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/252efea19d714da087f5932fadb2a4cc.webp" /></p><p>Daily chart for BNB/USDT (Source: <a href="https://www.tradingview.com/x/giAV0AG7/" rel="noopener noreferrer nofollow">TradingView</a>)</p><p>From a technical perspective, the 9 EMA line on BNB’s daily chart was acting as a strong resistance level for the altcoin’s price. Furthermore, the cryptocurrency’s price broke below a positive trend line that had formed on its charts throughout the past 48 hours, where it continued to trade at press time. Consequently, BNB may be at risk of retesting the immediate support level at $210 in the coming 24-48 hours.</p><p>Furthermore, strong sell pressure may lead to BNB’s price dropping below the $210 support level and potentially plummeting to as low as $200 in the following 2 weeks. On the other hand, a daily candle close above the 9-day EMA line at around $214.3 within the next 24-48 hours may invalidate the bearish thesis. In this scenario, BNB’s price could have the momentum needed to flip the $220 resistance level into support. Thereafter, continued buy pressure could boost the altcoin’s price to the next barrier at $230.1 in the following few days.</p><p>Investors and traders will want to take note of the fact that the daily RSI line crossed below the daily RSI SMA line over the past 72 hours. This indicated that seller’s gained the upper hand on BNB’s daily chart, which may result in BNB’s value decreasing in the upcoming 24-48 hours. Contradicting this bearish technical flag was the Bollinger Bands (BBANDS) on the altcoin’s chart.</p><p>At press time, BNB was resting on the lower level of the BBANDS indicator. Subsequently, buyers may identify the altcoin’s current price as a buy opportunity - resulting in an increase in price. Should buyers step in over the next couple of days, then BNB’s price may break back above the positive trend line on its chart, which was also confluent with the 9 EMA line. A daily close above this level could then lead to the cryptocurrency flipping the aforementioned resistance level at $220 before its price attempts a challenge at the upper level of the BBANDS indicator at $223.8.</p><p><a href="https://coinpaper.com/2273/binance-emerges-as-the-largest-corporate-taxpayer-in-lithuania?utm_source&#61;referral&amp;utm_medium&#61;publish0x&amp;utm_campaign&#61;publish0x" rel="noopener noreferrer nofollow">Read the full article on Coinpaper.</a></p>

Binance Emerges as the Largest Corporate Taxpayer in Lithuania

Table of Contents

Coinpaper.com

Other articles published on Sep 11, 2023

Historic Surge in New Bitcoin Addresses Coincides with Record Transaction Fee

The Emergence of Decentralized Autonomous Organizations (DAOs)

Top 10 Environmentally Sustainable Cryptocurrencies (Crypto ESG)

Aave v3 fork debuts noncustodial liquidity markets on Base

HyperSDK Solution of Avalanche Records TPS of Over 140K in Testing

Binance vs. SEC: Here’s What To Expect on the September 11th Hearing

Join our free newsletter for daily crypto updates!