u.today
In a recent announcement, Binance, the world's largest crypto exchange, revealed plans to delist Bitcoin (BTC) and Ethereum (ETH) cross margin and isolated margin pairs. This strategic move, effective from Nov. 28, is part of Binance's efforts to address mounting legal challenges within the digital assets industry.
The affected pairs are directly associated with BUSD, a stablecoin developed in collaboration with Paxos. Isolated margin borrowing on these pairs will be suspended on Nov. 28, followed by the closure of auto-settled user positions and the cancellation of pending orders on Dec. 7.
Pressure rise
This decision follows allegations by the U.S. SEC, which previously classified BUSD as a security. In response, both Paxos and Binance promptly halted the further minting and circulation of the stablecoin. This reflects the ongoing adjustments made by crypto exchanges to comply with evolving regulatory frameworks.
In a parallel development, Changpeng Zhao, or CZ, the founder of Binance, has stepped down from his role. This decision is part of a broader agreement with the U.S. Department of Justice to settle criminal charges against the exchange. Richard Teng has been named as the new CEO in the midst of this transitional period.
CZ's guilty plea earlier this week, related to charges of operating an unlicensed money transfer business, conspiracy and violating restrictions, resulted in a significant $4.3 billion fine for Binance. As the crypto space grapples with these regulatory challenges, the implications for the market are uncertain.
The delisting of major pairs and the leadership change at Binance underscore the growing regulatory pressures faced by crypto exchanges globally, highlighting a pivotal moment for the industry.