Binance to Halt 39 Liquidity Pools Following Assessment; Regulatory Challenges Continue
Crypto News – Binance made headlines on Sunday as it revealed plans to suspend 39 liquidity mining pools this week, in response to its latest evaluation. The 39 affected pools are set to cease operations on September 1, 2023, having reportedly failed to meet the assessment’s criteria.
The decision comes in light of Binance’s recent liquidity mining performance, with the platform stating that it will conduct periodic reviews of listed liquidity pools. The aim is to streamline liquidity for users, ensuring an optimized trading experience, improved pricing, and reduced slippage.
As a result of the recent review, the following 39 liquidity pools are expected to stop functioning by the end of this week:
- ADA/BNB
- ALICE/BTC
- APE/BTC
- AVA/USDT
- AVAX/BNB
- BTC/TUSD
- CHZ/BNB
- CHZ/BTC
- CTSI/BNB
- DOT/BUSD
- ENJ/USDT
- FIL/BNB
- FRONT/BUSD
- GALA/BNB
- ICP/BNB
- ID/BTC
- KDA/USDT
- LIT/USDT
- MATIC/BNB
- NEO/BNB
- PAXG/USDT
- PEPE/USDT
- SANTOS/USDT
- SUSHI/BNB
- SUSHI/BTC
- SXP/BNB
- SXP/BTC
- THETA/BNB
- THETA/BTC
- TKO/USDT
- TLM/USDT
- TRX/BNB
- TRX/ETH
- WBTC/ETH
- XMR/ETH
- XMR/USDT
- XVS/BTC
- XVS/USDT
- ZEN/USDT
Although users will no longer be able to provide liquidity to these pools, the existing liquidity will remain accessible to ensure continued trading opportunities. Users are also granted the ability to redeem and withdraw their assets from the respective pairs on Binance Spot before the closing date of September 1, 2023. Deposits in the liquidity pool will be calculated based on the current composition and automatically converted to users’ Spot wallets.
The announcement emphasizes that the removal of these liquidity pools will not impact trading in other respective pairs on Binance Spot. Traders will still have access to other available liquidity pools through Binance Liquid Swap.
Notably, this marks the second time this month that Binance has taken such an action. On August 9, 2023, the exchange had announced the discontinuation of around 38 liquidity pools by August 18, 2023.
Amidst these developments, Binance is grappling with regulatory challenges that are affecting its operations. The exchange is facing actions from the US Securities and Exchange Commission (SEC), leading to Visa and Mastercard gradually severing ties. Allegations against Binance include operating without proper registration and misleading investors about risks.
Furthermore, the US Commodity Futures Trading Commission (CFTC) has brought multiple charges against Binance, accusing it of deliberate avoidance of US law. In addition, the US Department of Justice is reportedly investigating Binance for potential fraudulent activities.
In a recent communication on August 23, 2023, Binance announced that its Binance Card will no longer be available to users in Latin America and the Middle East.
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