- Binance Exchange has unveiled plans to delist 10 new spot trading pairs.
- This delisting comes after the Exchange’s founder stepped down as CEO as part of a DOJ settlement.
Binance Holdings Ltd, the world’s largest crypto exchange by trading volume, has announced the removal of ten spot trading pairs, including Aptos (APT), Axie Infinity (AXS), Filecoin (FIL), and seven others. This action is strongly related to Binance’s escalating regulatory crackdown, although it follows a sequence of delistings throughout this year.
Binance highlighted in the update that it will discontinue Spot Trading Bots services for the aforementioned spot trading pairs at 03:00 (UTC) on November 24. To avoid potential losses, users are strongly urged to update or deactivate their Spot Trading Bots prior to the discontinuation of the service.
Legal Challenges and CZ’s Resignation
Meanwhile, the move coincides with the announcement that Changpeng ‘CZ’ Zhao, the company’s co-founder, has stepped down from his role as CEO, marking a significant development in the exchange’s history.
Binance has been grappling with an increasing number of legal challenges, and the decision to delist specific tokens, particularly those connected to Binance USD (BUSD) appears to be a strategic response to regulatory pressures.
The latest announcement follows a comprehensive deal between the exchange, CZ, and the U.S. Department of Justice (DOJ), resolving criminal charges against the firm. CZ has pled guilty to charges related to operating an unlicensed money transfer business, conspiracy, and violating restrictions, leading to a substantial fine of $4.3 billion for the exchange.
While CZ will no longer be involved in Binance’s day-to-day management, he retains his controlling stake in the company. Additionally, he faces a personal fine of $50 million. This legal resolution indicates a transformation in the leadership of Binance and emphasizes the seriousness of the legal issues the exchange has been facing.
Interestingly, Binance has agreed to a “full exit” from the United States as part of the deal with the Financial Crimes Enforcement Network (FinCEN). During this time, a five-year watchdog will be established to oversee the exchange’s compliance with regulatory requirements. The US Treasury Department will have unrestricted access to Binance’s data and systems during this period, ensuring that financial standards are strictly followed.
CZ’s Sentencing and Future Consequences
The sentencing for CZ is scheduled for Feb. 23, though delays are anticipated. If convicted, he could face up to 18 months in prison. This emphasizes the severity of the charges brought against him. CZ, in a statement, expressed a desire to “take responsibility and close this chapter in my life,” signaling a commitment to resolving the recent legal challenges.
As some on Crypto X are postulating, the repercussions of these developments are likely to extend beyond the immediate delistings, affecting Binance’s global operations and reputation. As such, traders and investors might keep a close eye on the exchange to see how it navigates these challenges and adjust its strategies to comply with evolving regulatory frameworks.
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