• Binance has recently made discreet changes to its Terms of Use after being charged by the U.S Securities and Exchange Commission (SEC).
• These changes are largely concerned with the management of digital assets that are no longer offered on the exchange.
• The development could have long-term implications, as Binance now has exclusive power over which digital assets are listed on its platform.
Binance Charged by SEC
The U.S Securities and Exchange Commission (SEC) recently charged cryptocurrency exchange Binance for possible violations against securities laws.
Binance Changes Terms of Use
Following this charge, Binance has quietly changed its Terms of Use, which may affect all users who use the exchange. The changes are mainly related to how digital assets that are no longer offered on the exchange will be managed. This allows Binance to have exclusive control over which tokens can be listed on its platform and adds a clause where after a certain period, if a user still holds a delisted token in their account, it can be converted into another form of digital asset chosen by Binance itself without prior warning or any liability associated with such conversions.
Consequences & Speculations from Crypto-Twitter
The consequences of this change remain unknown, but Crypto-Twitter is speculating that Binance could convert these delisted tokens into their native token called BNB. It was also pointed out that storing cryptocurrencies in centralized exchanges like Binance carries an inherent risk since they have full control over user’s assets and should preferably be kept in secure wallets or decentralized exchanges instead.
Long Term Implications
These changes could have long-term implications as it gives more power to centralized exchanges like Binance when it comes to managing user’s digital assets and raises concerns about lack of transparency regarding what type of digital asset they could convert them into at any given time.
Conclusion
Overall, these recent discreet changes to the Terms of Use add further evidence towards stricter enforcement action taken up by regulators against crypto exchanges like Binance and calls for users to take extra caution when dealing with cryptocurrencies stored in centralized exchanges due to their inherent risks.