Binance Australia in hot water with regulator over derivatives tradingBinance, one of the leading cryptocurrency exchanges, has made an announcement regarding the delisting of leveraged tokens XRPUP and XRPDOWN on July 25. This decision comes in the wake of legal action taken by the United States Securities and Exchange Commission (SEC) against both Binance and Ripple Labs, alleging the sale of unregistered securities.
To ensure a smooth transition, Binance urges users to redeem their tokens using the wallet function before the delisting date. In exchange for the leveraged tokens, Binance will provide an equivalent amount of Tether’s USDT stablecoin to affected users.
Leveraged tokens have been popular among investors looking to enhance their exposure to specific cryptocurrencies like XRP. These tokens are designed to track the price movements of the underlying cryptocurrency by adjusting leverage dynamically through a sophisticated algorithm.
The delisting of XRPUP and XRPDOWN is not the first move by Binance this year. On May 26, the exchange removed 21 spot trade pairs from trading. Notable cryptocurrencies impacted by this change included Avalanche (AVAX), Axie Infinity (AXS), Polkadot (DOT), Fantom (FTM), Chainlink (LINK), Sandbox (SAND), and Shiba Inu (SHIB).
While Binance assures users that they can continue trading these assets with different pairs, the decision to delist was necessitated by losing the exchange’s banking partner for the AUD on- and off-ramp. Consequently, customers were unable to utilize the PayID payment facility.
Despite these adjustments, Binance remains committed to providing a seamless trading experience for its users. The exchange emphasizes that users can still trade the affected assets, albeit with alternative pairs. Binance’s dedication to maintaining a user-friendly platform has prompted these proactive measures to mitigate the impact of changes in trading options.
Binance’s forthcoming delisting of XRPUP and XRPDOWN leveraged tokens reflects the ongoing legal challenges the exchange and Ripple Labs face. Users are advised to redeem their tokens before the specified date, with Binance offering USDT stablecoin in exchange.
Although the delisting of leveraged tokens follows the removal of several spot trade pairs earlier this year, Binance assures its users that they can continue trading the affected assets using different pairs. The exchange’s proactive approach aims to ensure a smooth trading experience amid changes prompted by the loss of banking partnerships.
Additionally, the earlier removal of several spot trade pairs was necessitated by the loss of the exchange’s AUD banking partner. Despite these challenges, Binance remains committed to supporting its users’ trading activities with alternative trading pairs.
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