Key facts:
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Binance updated its terms on June 6, shortly after receiving the SEC’s lawsuit.
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Binance may notify users of their asset conversions, but is not required to.
The largest bitcoin (BTC) and cryptocurrency exchange Binance updated its terms of services. Now they establish that, if a user has assets listed on the platform, the company may, at its discretion, take them and convert them to different ones. In addition, they say they are not required to notify their clientele.
Recently updated, on June 6, 2023, the terms, which must be accepted when opening an account on Binance, point out that that exchange house “has sole authority” to determine which assets are or are not listed.
They also indicate that if cryptocurrencies are no longer listed on the platform and remain in users’ wallets beyond a specified period of time, “Binance may, at its discretion, convert such assets into a different type of digital asset.” To this is added that the company “may change the available order size” for each crypto asset.
Binance is not required to notify clients
Binance’s new terms of service also state that the company can notify users in advance about listings, unlistings and conversions of your assets. “But you are not required.”
In addition, “Binance shall have no liability to users in connection with such additions, deletions, or conversions” of assets, as determined by the company.
The update of the Binance terms of service makes it understood that the destination of the funds of the clients that are within the platform, it is subject to the decision of the exchange developers.
This is reminiscent of the scoop of the bitcoiner movement, “not your keys, not your coins” (if they are not your keys, they are not your coins). The above, considering that now Binance has the power to arbitrarily convert users’ cryptocurrenciesas long as they so decide.
such a situation you don’t see it when it comes to truly decentralized bitcoin adoption. As inspired by Satoshi Nakamoto over a decade ago, in a non-custodial wallet it is virtually impossible for an entity or company to access people’s funds. It is the owners who have the duty and the right to keep their money safe.
Binance Updates Its Terms After SEC Flagged Several Cryptocurrencies From Securities
The update to Binance’s terms of service, where they mention the delisted cryptocurrencies, comes shortly after at least 12 crypto assets were designated by the United States Securities and Exchange Commission (SEC), as securities offered by Binance without authorization.
For this alleged offering, as well as for operating an unregistered stock exchange, the SEC officially sued Binance, as well as its founder and CEO, Changpeng Zhao, earlier this week.
Among these cryptocurrencies, several well-known ones in the ecosystem stand out, such as ADA from Cardano, SOL from Solana, MATIC from Polygon, SAND from SandBox, AXS from Axie Infinity and many others.
After the lawsuit, which was also filed against Coinbase, the largest crypto asset exchange in the United States, an exchange house in that country proceeded to delist the indicated cryptocurrencies by the SEC. It was about RobinHood, as CriptoNoticias reported yesterday.
In addition, Binance.US, the American subsidiary of Binance, also removed services related to these crypto assets designated by the US securities regulator. As reported by this outlet, that company removed more than 100 trading pairs, among which several stood out. related to cryptocurrencies which, according to the SEC, are securities.
