Binance quietly tweaks its Terms of Use after SEC’s lawsuit
A week after the SEC charged it, Binance is busy making moves, albeit a little discreetly.
After being charged by the U.S. Securities and Exchange Commission (SEC) last week, Binance has discreetly changed its Terms of Use, with the same likely to affect all those who use the exchange.
These changes are largely concerned with the management of digital assets that are no longer offered on the exchange. This is an important step since the SEC classified several tokens listed on Binance as securities.
Binance now has exclusive power over which digital assets are listed on its platform, and it has the right to add or delete these assets at its discretion, according to the revised conditions. This is common practice in most cases, but the new conditions take it a step further. After a specific period, if a user still possesses a delisted digital asset in their Binance account, the exchange retains the right to convert these digital assets into a new form of digital asset of its choice.
The development could have long-term implications. The exchange is now not required to tell users in advance of this change, and is not accountable for any liability associated with such conversions.
The discreet change to the terms of use is being seen as Binance’s response to enforcement action by the SEC last week.
Binance to convert delisted tokens to BNB?
Crypto-Twitter has been contemplating the possible outcomes of this development.
Commentator Bitfinexed speculated that Binance will convert the delisted tokens into Binance Coin (BNB) tokens. Bitfinexed added that this step would keep BNB prices from dropping immediately, but once the exchange runs out of “shitcoins,” BNB will implode and everyone will lose their funds.
Another user underlined the “inherent risk” of storing crypto-tokens of centralized exchanges like Binance as such platforms control the fate of users’ assets.
“Consider transferring your holdings to a decentralized exchange, where you have full control over your investments, or storing them in a secure wallet,” added the user.
While such views are speculative, the lack of transparency over the type of digital assets Binance can convert raises concern among users.
