Introduction

Binance has updated its terms of service regarding the management of inserted/deleted tokens on the exchange. Under Binance’s new rules, the exchange now has the authority to convert cryptocurrencies assets still held by its users after a certain period for any supported token of their choice.

Regulatory Issues

The regulators have accused Binance and its founder, Changpeng Zhao, in the United States for alleged corrupt practices and unregistered securities offerings.

Updates without Official Announcement

The exchange recently updated its terms of service without any official announcement on social media. Encryption.news asked if the company had warned users of the changes, but has not yet received an official comment.

New Rules for Delisted Tokens

Under Binance’s new rules, all delisted tokens held by a Binance user after a certain period will be automatically converted to any supported cryptocurrency asset on the exchange without official notice to the customer. The paper reads:

“Binance has the exclusive authority to select the listed digital assets on the platform may add or remove digital assets from the platform from time to time. If the digital assets are no longer listed on the platform remain in your Binance account after a specified period, Binance may, in its discretion, convert these digital assets into a different kind of digital assets. Binance also changes the size of the request available for every asset is digital. In regards to such additions, removals, transfers, or modifications, Binance may notify users, but is not obligated to do so in advance and Binance bears no responsibility to users in communication with such additions, removals, transfers, or modifications.”

Binance terms of service

SEC Cross against Encryption Companies

The US Securities and Exchange Commission (SEC) has accused Binance and its CEO CZ of disorganized running a global exchange. The SEC claims that it has allowed US clients to participate in transactions without opting out of required disclosure and registration conditions.

In addition, the SEC alleged that Binance and CZ mixed customer funds, redirecting them to entities owned by CZ, took part in deceptive trading activities, and created a pseudo-American branch to avoid legal audit.

The SEC claims that both Binance and CZ deliberately overlooked regulatory rules, perhaps putting investors at financial risk for their profit motives. In response to these allegations, CZ denied the charges on Twitter, confirming that Binance will soon issue an official response, which they later did.

After focusing on Binance, the Securities and Exchange Commission has turned its attention to Coinbase, the largest exchange in the United States.

The SEC accused Coinbase of operating as an unregistered broker, stock exchange, and clearing agency over a four-year period. They also claimed that Coinbase’s staking program was an unauthorized offering of securities.

Coinbase CEO Brian Armstrong denied the accusations on Twitter, confirming that the SEC sanctioned Coinbase’s operations when it launched publicly in 2021. In a statement, Coinbase expressed disappointment with the Securities and Exchange Commission’s actions and confirmed its commitment to cooperation with ongoing investigations.