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Binance Delists FTX Tokens Due to Crypto Users' Lack of Understanding

Binance, the world’s largest crypto exchange by trading volume, has made a tough decision to delist all FTX leveraged tokens, citing that customers did not understand how the tokens work. The exchange intends to shut off withdrawals and deposits for the assets on March 31 at 8 a.m. UTC and to stop trading at 10 a.m. on the same day. The decision has sparked mixed reactions. Some users support the decision while others want the leveraged tokens to remain on the crypto exchange platform.

Crypto users did not understand leveraged tokens

Changpeng Zhao, Binance CEO, announced that the crypto exchange will be delisting leveraged crypto tokens because several customers still did not fully understand the tokens. Zhao stressed that the leveraged tokens brought significant volume to the company, and it would be “bad” for the firm to delist them. But the firm has made such a tough decision to protect its customers. Zhao stated: “Protecting users comes first. Seeing from comments in earlier posts, I expect some complaints still. If you dislike our decision for this delisting, check back on the prices of these tokens in a month’s time, and let us know if you still complain then.”

Customers have until March 31 to move funds off of the crypto exchange. For tokens, which are not moved before this specified time, the crypto exchange said that it would credit customers’ accounts with the same value held in each token at the time of delisting in Binance stablecoin USD.

The assets targeted to be delisted include BEAR, BULL, EOSBULL, ETHBULL, ETHBEAR, EOSBEAR, BNBBEAR, XRPBEAR, BNBBULL, and XRPBULL.

Since the announcement made, customers have been mass selling their leveraged tokens on the crypto exchange. Others have already expressed their complaints, citing multi-thousand-dollar losses because of the delisting. Zhao’s twitter was flooded with comments from customers who called for relisting of the leveraged crypto tokens on Binance once again. Zhao stated that the Binance team would explore more innovative solutions, but for now, the firm has finalized the decision to delist the tokens.

In December 2019, Binance began providing FTX leveraged tokens on its platform after investing in the firm.

FTX leveraged tokens allow cryptocurrency users to purchase positions worth more than what they can currently afford that can be highly risky but potentially profitable in case they bet correctly. The tokens are designed to reinvest profits automatically, so they work best in trending markets. In this way, customers can purchase a leveraged token, and when the price rises or declines, the return is amplified by 3x leverage.

Binance alert on the removal of altcoins trading pairs

This is not the first time Binance has delisted crypto tokens from its platform. In September 2019, the exchange removed 30 trading pairs to further enhance liquidity and the customer trading experience. The company delisted such non-USDT stablecoins pairs since they significantly suffered from slippage because of a lack of trading volume. However, Binance continues to make such moves to consolidate and further improve the quality of its platform, leading to a more optimized and streamlined trading experience for its users.

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Major Korean Exchanges Delisting Litecoin Subject to New Privacy Feature Concerns

Major crypto exchanges in South Korea, including Upbit, Bithumb, Coinone, Korbit, and Gopax, have announced their intention to delist Litecoin from their trading services subject to the new privacy-based MimbleWimble upgrade on the Litecoin blockchain.

The idea of delisting has been brewing for a while. On May 20, Litecoin developers activated a privacy-preserving protocol called MimbleWimble Extension Blocks (MWEB) on the cryptocurrency. The new MimbleWimble update has added a ‘confidential transactions’ feature to the Litecoin blockchain, allowing users to transfer coins while concealing transactional data.

But South Korean crypto exchanges have not been comfortable with the new upgrade because they have to comply with strict laws regarding privacy coins.

A few days later on May 23, Upbit and Bithumb informed investors about the risk associated with Litecoin following the MimbleWimble upgrades. The two exchanges referred to Korea’s Act on the Reporting and Use of Specific Financial Transaction Information, which mandates that cryptocurrency exchanges must comply with KYC and AML measures.

More further developments have continued to unfold. Upbit announced yesterday that it would delist Litecoin because of the anti-money laundering rules that require exchanges to record data on cryptocurrency transactions. Upbit stated that because of the nature of the Mimblewimble privacy protocol, it will not support Litecoin transfers and will remove the coin from its exchange.

Upbit further mentioned that it would halt trading of Litecoin on June 20 and give users one month’s notice to withdraw their funds.

Bithumb also announced yesterday that it will halt all Litecoin deposits from June 8 (that is yesterday). The exchange has given customers until July 25 to withdraw their Litecoin funds, after which it would not support such withdrawals.

Three other South Korean exchanges, namely Gopax, Korbit, and Coinone, have also made official announcements about delisting Litecoin transactions to their customers.

Exchanges Facing Tighter Supervision

South Korea is the third-largest market for cryptocurrency trades globally, coming in behind Japan and the United States.

South Korea’s crypto market first rose to fame in late 2017, when Bitcoin trading skyrocketed in popularity among ordinary citizens who looked to cash in on the virtual currency’s rising price. Since that time, crypto demand has remained so high in the country.

In recent months, Seoul has ramped up the control of its crypto industry to rein in illicit activities such as money laundering and tax evasion. Regulators view cryptocurrency as a risky financial activity among young retail traders.

In 2022, the government announced plans to introduce a crypto capital gains tax. Investors who make over $2,135 in trading profit are expected to face a 20% tariff.

Recently, South Korean financial authorities announced plans to enhance monitoring of local crypto exchanges and introduce legal safeguards in the industry. This came after hundreds of thousands of local investors fell victim to the collapse of the Terra stablecoin and its sister token, LUNA.

Authorities expect local exchanges to play their role properly. Exchanges that violate rules are held legally responsible for their actions.

Last month, the country’s Financial Services Commission (FSC) collaborated with the Financial Supervisory Service to enforce emergency inspections into local crypto exchanges, asking for data on the number of transactions and investors.

Binance.US To Delist AMP following SEC’s Claim Token as Security

Binance.US, the U.S. arm of the world’s largest cryptocurrency exchange Binance, announced on Monday that it will delist the AMP token after the US Securities and Exchange Commission (SEC) described the token as a security.

In a statement made on Monday, Binance.US said that the exchange always supports transparency while adhering to compliance with the directives of federal authorities.

The exchange stated that projects trading under its platform should continue to meet the listing standards based on the legally approved scope of the Digital Asset Risk Assessment Framework.

Binance.US said it will delist the AMP token “out of an abundance of caution” of potential enforcement by federal regulators.

The exchange disclosed it will close down deposits of Amp (AMP) and remove the AMP/USD trading pair from its platform on Aug 15. The exchange said the move follows the token’s mention in legal action from the SEC.

Last week on July 21, the SEC identified nine crypto assets as securities, and the AMP token was one of them.

According to its blog post, Binance.US stated: “We believe that, in some circumstances, delisting an asset best protects our community from undue risk. We operate in a rapidly evolving industry, and our listing and delisting processes are designed to be responsive to market and regulatory developments.”

Binance.US said AMP is the only token of the nine mentioned in the SEC’s legal case trading on its platform. The exchange added that it may resume trading of AMP in the future on its platform, according to the regulator’s decision.

Implications of SEC Calling Coins Securities

On 21st July, The SEC brought insider trading charges against a former Coinbase (COIN) product manager and other two individuals. The regulator also mentioned nine cryptocurrencies as securities, with potential plans to charge the issuers and the exchange listing the so-called securities.

The designation of the nine cryptocurrencies as securities could have wide implications in the crypto markets. The designation means that the coins will be regulated as if they were a stock or a bond. The issuers of such tokens will also have to comply with the country’s securities laws to be able to offer the assets to investors within the US.

Such designations would make running a crypto exchange more expensive and complex. Furthermore, exchanges would face continuous scrutiny by regulators, which could lead to penalties, fines, penalties and, in the worst case, prosecutions if criminal authorities got involved. This could also mean losing future funding from investors who may abandon trading because of fear of increased compliance burdens and regulatory scrutiny.

And more implications are yet to come as SEC’s rulings are underlay.

In its simplest form, whether an asset is or is not a security under US rules is basically a question of how much such a token looks like shares issued by a firm raising money.

To determine that, the SEC applies a legal test from a 1946 US Supreme Court decision. Under that framework, the SEC can consider an asset as security if investors raise or pump in funds with plans to profit from the efforts of the company’s leadership.

In December 2020, the SEC filed a lawsuit against Ripple Labs Inc., for allegedly raising funds by selling the XRP digital token without registering it as a security.

The regulator claimed that the firm was funding its growth by issuing XRP to investors, betting its value would rise. The case is now a massive legal battle between the SEC and Ripple.

BETA, BOND, WTC, and XEM Added to Binance's Monitoring Tag List

Binance has expanded its Monitoring Tag list to include Beta Finance (BETA), BarnBridge (BOND), Waltonchain (WTC), and NEM (XEM) as of October 4, 2023, according to Binance official blog. The Monitoring Tag serves as a risk indicator for tokens with elevated volatility and risk.

The Monitoring Tag is a feature on Binance that flags tokens with higher volatility and risk compared to other listed assets. Binance performs regular reviews of these tagged tokens based on a comprehensive set of criteria. These criteria include the team’s commitment to the project, the level and quality of development activity, trading volume and liquidity, and the stability and safety of the network from attacks, among others. Tokens that consistently fail to meet these criteria are at risk of being delisted from the platform.

To trade these tagged tokens, Binance mandates that users pass quizzes every 90 days on its Spot and Margin trading platforms. These quizzes aim to ensure that traders are fully aware of the risks involved in trading such volatile assets. Additionally, a risk warning banner is displayed on the trading pages for these tokens, serving as an extra layer of caution for traders.

Binance’s decision to extend its Monitoring Tag to these four tokens is part of a broader industry trend towards increased scrutiny and risk management. On September 6, 2023, Coinbase announced that it would suspend trading for BarnBridge (BOND) and other tokens. Similarly, OKX revealed plans to delist several trading pairs, including XEM, that did not meet its listing criteria on September 21, 25, and 26.

Binance has committed to conducting periodic reviews to reassess the Monitoring Tag status of tokens. This is part of the exchange’s broader strategy to foster a transparent and sustainable cryptocurrency ecosystem. The Monitoring Tag serves as a tool for both the exchange and its users to manage risk effectively, and its extension to include more tokens is indicative of a maturing market that is increasingly focused on risk management and compliance.

Binance to Cease Support for Leveraged Tokens by April 2024

Binance, the world’s leading cryptocurrency exchange, has announced its decision to discontinue support for Binance Leveraged Tokens (BLT). As part of its ongoing product review process, aimed at concentrating on offerings that deliver the most value and competitive services to its users, Binance has decided to halt trading and subscription services for all its leveraged tokens by the end of February 2024. This move underscores the dynamic nature of cryptocurrency exchanges, constantly evolving to meet user demands and regulatory standards.

Key Details of the Announcement

Trading and Subscription Cessation: Trading and subscription services for all Binance Leveraged Tokens will be suspended starting 2024-02-28 at 06:00 (UTC).

Delisting and Redemption Cessation: Following the suspension, the tokens will be delisted, and redemption services will cease as per the schedule detailed for each leveraged token pair, culminating on 2024-04-03 at 06:00 (UTC) for certain tokens.

Affected Leveraged Token Pairs: The tokens targeted for cessation include popular pairs like BNBUP/USDT, BNBDOWN/USDT, ETHUP/USDT, ETHDOWN/USDT, BTCUP/USDT, and BTCDOWN/USDT.

Final Token Conversion: Post-delisting, any remaining leveraged tokens held by users will be converted to USDT based on their net asset value (NAV) at the time of delisting. The USDT will then be distributed to the users’ accounts within 24 hours of the delisting process completion.

Implications for Traders

This decision impacts traders who utilize leveraged tokens for short-term trading strategies. Leveraged tokens, which represent a basket of perpetual contract positions, offer traders exposure to leverage while mitigating some of the risks associated with liquidation. However, they are also subject to rebalancing and can be volatile, necessitating a clear understanding and strategy for their use.

Next Steps for Users

Binance advises users holding any of the mentioned leveraged tokens to either trade them for other tokens prior to the cessation of trading services or redeem them through the wallet function or Leveraged Tokens page before their respective delisting times. The automatic removal of trade orders for these tokens will occur at the cessation time, emphasizing the need for timely action from the users’ side.

Binance’s Commitment to Adaptation and User Support

This announcement reflects Binance’s commitment to adapting its service offerings to focus on products that align with user interests and market trends. It also highlights the importance of regular product evaluations to ensure compliance and competitive edge in the fast-paced cryptocurrency market. Binance assures continued support for its users throughout this transition, providing detailed guidance on how to manage their leveraged token holdings effectively.

Conclusion

As the cryptocurrency landscape continues to evolve, exchanges like Binance play a pivotal role in shaping market practices and offerings. The cessation of support for leveraged tokens by Binance marks a significant shift in its product strategy, driven by a focus on user value and service competitiveness. Users affected by this change are encouraged to take prompt action to adjust their trading strategies and holdings accordingly.

Including ALGO, XLM, and AERGO, Binance to Remove Select Spot Trading Pairs

Binance, one of the world’s leading cryptocurrency exchanges, has announced its plans to remove several spot trading pairs from its platform on March 8, 2024. The decision comes as part of the exchange’s periodic review process, which aims to maintain a high-quality trading market and protect users’ interests.

According to the official announcement, Binance will cease trading for the following spot trading pairs at 03:00 UTC on March 8, 2024: AERGO/BTC, ALGO/BNB, CTSI/BNB, FARM/BTC, FUN/ETH, and XLM/BNB. The exchange has advised users to update or cancel their Spot Trading Bots associated with these trading pairs prior to the cessation of services to avoid potential losses.

It is important to note that the delisting of these spot trading pairs does not affect the availability of the tokens on Binance Spot. Users can still trade the base and quote assets of the affected trading pairs on other available trading pairs within the platform.

Binance regularly conducts reviews of its listed spot trading pairs to ensure optimal liquidity and trading volume. The exchange considers multiple factors when making the decision to delist trading pairs, prioritizing the protection of its users and the overall health of the trading market.

This announcement follows Binance’s established delisting guidelines, which are designed to be transparent and fair to all users. The exchange has provided a list of frequently asked questions (FAQs) to address common concerns and clarify the delisting process for affected tokens and spot trading pairs.

As the cryptocurrency market continues to evolve, exchanges like Binance must adapt and make necessary adjustments to their offerings. By removing underperforming or illiquid trading pairs, Binance aims to streamline its platform, improve user experience, and maintain a robust trading environment for its global user base.

The delisting of spot trading pairs is not an uncommon practice among cryptocurrency exchanges. In the past, Binance and other major exchanges have removed trading pairs that failed to meet certain liquidity and trading volume thresholds. This process helps to concentrate trading activity on more active and liquid markets, thereby enhancing overall market efficiency and user experience.

Moreover, the removal of underperforming trading pairs can also help to reduce the potential for market manipulation and other malicious activities. By focusing on high-quality and actively traded pairs, exchanges can better monitor and maintain the integrity of their trading markets.

Binance’s commitment to regular market optimization through the review and delisting of spot trading pairs demonstrates the exchange’s proactive approach to ensuring a healthy and sustainable trading environment. This ongoing process helps to protect users’ interests, foster trust in the platform, and support the long-term growth and development of the cryptocurrency industry as a whole.

Users are encouraged to stay informed about the latest updates and announcements from Binance by following the exchange’s official communication channels, including their website, blog, and social media accounts. As always, it is crucial for cryptocurrency traders and investors to conduct thorough research, understand the risks involved, and make well-informed decisions when participating in the market.

As Binance continues to lead the way in the cryptocurrency exchange space, its efforts to maintain a high-quality trading market through the strategic delisting of spot trading pairs serve as an example for other exchanges to follow. By prioritizing user protection, market efficiency, and long-term sustainability, Binance is helping to build a more robust and trustworthy cryptocurrency ecosystem for all participants.

Binance to Delist ARPA/BNB, COMP/TUSD, EDU/BNB and PENDLE/TUSD

Binance, the world’s leading cryptocurrency exchange, has announced the removal of a handful of spot trading pairs from its platform. This decision, scheduled to take effect on March 15, 2024, at 03:00 UTC, aligns with Binance’s commitment to maintaining a high-quality trading market and protecting its users.

The trading pairs slated for delisting include ARPA/BNB, COMP/TUSD, EDU/BNB, EDU/TUSD, and PENDLE/TUSD. These pairs have been identified through Binance’s periodic review process, which assesses factors such as liquidity and trading volume. In cases where these metrics do not meet the exchange’s standards, Binance opts to delist to ensure the overall market’s health.

It is important to note that the delisting of these spot trading pairs will not affect the availability of the underlying tokens on Binance’s Spot market. Users will still have the option to trade these tokens in other available trading pairs on the platform.

In addition to the spot market implications, Binance has also advised users that the Spot Trading Bots services for the mentioned pairs will be terminated concurrently with the delisting. This move requires users to update or cancel their Spot Trading Bots settings to avoid potential losses.

The announcement highlights Binance’s ongoing commitment to transparency and user protection. The exchange continues to encourage users to review their guidelines on delisting and frequently asked questions for more information.

This delisting serves as a reminder of the volatile nature of the cryptocurrency markets. Binance’s proactive approach to reviewing and adjusting its offerings stands as a testament to its dedication to providing a secure and robust trading environment.

As the crypto landscape evolves, Binance’s actions reflect its adaptability and responsiveness to market dynamics. This event also underscores the importance for traders to stay informed and flexible in managing their crypto portfolios.

Binance Announces Imminent Delisting of DREP, MOB, PNT Cryptocurrencies

Binance, one of the globe’s largest and most influential digital asset exchanges, has decided to delist three cryptocurrencies: DREP, Mobilecoin (MOB), and pNetwork (PNT). This action is set to take effect on April 3, 2024, at 03:00 (UTC) and comes as a significant move for traders and investors involved with these tokens.

The decision to delist these assets stems from Binance’s rigorous and periodic review process, designed to ensure that all listed cryptocurrencies meet the platform’s high standard and industry requirements. Binance emphasizes the importance of protecting its users and adapting to the ever-evolving market dynamics. Several criteria inform the delisting process, including the team’s commitment to the project, the level and quality of development activity, trading volume and liquidity, network stability, responsiveness to due diligence inquiries, and adherence to new regulatory requirements.

The specific trading pairs affected by this decision include DREP/BTC, DREP/USDT, MOB/BTC, MOB/USDT, and PNT/USDT. Post-delisting, all trade orders involving these pairs will be automatically removed. Binance has urged users to manage their trades and investments accordingly, as deposits of these tokens past April 4, 2024, will not be credited, and withdrawals will only be supported until July 3, 2024.

Binance’s ecosystem products, such as Binance Simple Earn, Auto-Invest, Loans, Margin, and others, will also phase out support for these tokens in line with the delisting schedule. The platform has provided detailed timelines for each service, advising users to take appropriate actions to avoid potential losses. For instance, Binance Loans will close all outstanding loan positions involving these tokens by March 28, 2024, and Margin trading pairs will be delisted by March 28, 2024.

The delisting notice also highlighted that after the withdrawal deadline, delisted tokens might be converted into stablecoins at Binance’s discretion, but this is not guaranteed. If such conversions occur, a separate notification will be issued to users.

This delisting serves as a poignant reminder of the volatile and regulatory-complex nature of the cryptocurrency market. It underscores the need for continuous compliance and quality assurance in the projects behind digital assets. For Binance, maintaining a robust and trustworthy platform for its users remains paramount, even when it necessitates tough decisions like these.

Investors and traders are encouraged to stay informed and proactive in managing their cryptocurrency portfolios in light of such changes. With the industry’s landscape continuously shifting, adaptability and attentiveness remain critical traits for success in the crypto space.

Binance to Delist BAKE, ID, MBOX, OP, RDNT, UNI Related Trading Pairs in Spot Market

Binance, in its effort to ensure a vibrant and liquid trading environment, regularly reviews all listed spot trading pairs. Based on their most recent evaluations, the exchange has decided to delist certain trading pairs due to factors like poor liquidity and trading volume.

The spot trading pairs that will be removed from Binance on April 12, 2024, at 03:00 UTC are:

BAKE/BNB

ID/TUSD

MBOX/BNB

OP/TUSD

RDNT/TUSD

UNI/BNB

It is important to note that the delisting of these spot trading pairs does not impact the availability of the tokens on Binance Spot. Users will still be able to trade the base and quote assets of these tokens on other available trading pairs on the platform.

Additionally, Binance will terminate its Spot Trading Bots services for the aforementioned spot trading pairs on April 12, 2024, at 03:00 UTC. Users who utilize this service are advised to update or cancel their Spot Trading Bots prior to the cessation to avoid any potential losses.

Binance has provided guidelines and frequently asked questions regarding delisting, which users can refer to for more information. The exchange also advises users to check the original English version of the announcement for the latest and most accurate information, as there may be discrepancies in translated versions.

As with any investment in digital assets, Binance reminds users that prices can be volatile, and the value of investments may go up or down. Users are responsible for their investment decisions and should not invest more than they can afford to lose. It is recommended that users seek independent financial advice and consider their individual circumstances before trading.

Binance reserves the right to amend or cancel the delisting announcement at any time and for any reasons without prior notice.