Binance has updated its Terms of Service regarding the management of tokens listed/deleted on the exchange. Under Binance’s new rules, the exchange now has the power to convert deleted crypto assets that are still held by its users after a certain period into any supported token of its choice.
Regulators have charged Binance and its founder Changpeng Zhao in the US over alleged corruption practices and unregistered securities offerings.
The exchange recently updated its terms of service without officially announcing it on social media. Crypto.news asked if the company had warned users about the changes but has not yet received an official comment.
Under the new Binance rules, all deleted tokens held by a Binance user after a certain period will be automatically converted to any supported crypto asset on the exchange without formal notification to the customer. The paper reads:
Binance has the exclusive authority to select digital assets listed on the platform and may add or remove digital assets from the platform at its sole discretion, from time to time. If digital assets that are no longer listed on the platform remain in your Binance account after a specified period, Binance may at its discretion convert such digital assets into a different type of digital asset. Binance may also change the order size available for each digital asset. In connection with such additions, removals, transfers or modifications, Binance may, but is not obligated to, notify Users in advance and Binance shall have no liability to Users in connection with such additions, removals, transfers or modifications.”
Binance Terms of Service
SEC campaign against cryptocurrency companies
The US Securities and Exchange Commission (SEC) has accused Binance and its CEO, CZ, of running a global unregulated exchange. The SEC claims that it allowed US clients to participate in transactions without adhering to required disclosure and registration requirements.
(embed) https://www.youtube.com/watch?v=xFwWN6Zk8zw (/embed)
In addition, the SEC alleges that Binance and CZ mixed customer funds, redirected them to CZ-owned entities, engaged in deceptive trading activities, and set up a bogus US subsidiary to avoid legal scrutiny.
The SEC claims that both Binance and CZ knowingly overlooked regulation, which could expose investors to financial risks due to their profit motives. In response to the allegations, CZ denied the charges on Twitter, confirming that Binance would soon issue an official response, which they later did.
After focusing on Binance, the SEC has turned its attention to Coinbase, the largest exchange in the US
The SEC charged Coinbase with acting as an unregistered broker, securities exchange, and clearing agency over a four-year period. They also alleged that Coinbase’s staking program was an unauthorized offering of securities.
Coinbase CEO Brian Armstrong denied the accusations on Twitter, confirming that the SEC imposed sanctions on Coinbase’s operations when it was announced in 2021. In a statement, Coinbase expressed disappointment with the SEC’s actions and reaffirmed its commitment to cooperating with the investigations. persistent.
