Binance, the world’s largest cryptocurrency exchange, has recently made an announcement regarding the termination of support for deposits and withdrawals of several Multichain-bridged tokens starting from July 7, 2023. In a previous incident on May 25, Binance had initially suspended the deposit of ten Multichain-bridged tokens due to significant delays in transaction processing time on the Multichain protocol.
The situation further escalated when Multichain revealed its inability to establish contact with its CEO, Zhaojun, adding to the complications. As a result of this communication breakdown, the Multichain team faced challenges in obtaining the required server keys to maintain certain nodes, thus impacting the cross-chain operations of multiple networks, including ONUS, Omax, Findora, and more.
Binance Suspends Support for Multichain-Bridged Tokens on Specific Chains
In its most recent update on July 5, Binance, the renowned cryptocurrency trading platform, revealed that it would no longer offer support for certain tokens, including eight Multi-Chain Bridged Tokens.
The affected tokens include Polkastarter (POLS) on BNB Smart Chain, Alchemy Pay (ACH) on BNB Smart Chain, Beefy Finance (BIFI) on Fantome Network, SuperVerse (SUPER) on BNB Smart Chain, Travala (AVA) on the Ethereum Network, Spell Token (SPELL) on Avalanche C-Chain, Alpaca Finance (ALPACA) on Fantom Network, and Harvest Finance (FARM) on BNB Smart Chain. Binance has not disclosed a specific reason for this decision at the present time. They have only mentioned that it follows previous suspensions that took place in May.
Nevertheless, Binance has clarified that users will still be able to make deposits and withdrawals of these tokens through other supported networks on the exchange. During its ongoing challenges, the Multichain protocol has witnessed a decline in its Total Value Locked (TVL) by more than 10% in the past month, with the figure dropping to $1.3 billion, as reported by Defiillama. The protocol’s native token, MULTI, has also encountered a similar fate, experiencing a decrease of 22.15% in the past month, according to data from CoinMarketCap. At the time of writing, MULTI is being traded at $3.14, reflecting a 5.63% loss within the last day.
Binance Continues to Face Regulatory Challenges
In recent developments, the regulatory challenges surrounding Binance have intensified, with the exchange currently under investigation by governments worldwide. The latest update reveals that the Australian Securities and Investments Commission (ASIC) conducted a raid on Binance offices on July 4 as part of an ongoing investigation into the exchange’s discontinued derivatives program.
This development follows ASIC’s cancellation of Binance Australia’s derivatives license in April, which occurred during a comprehensive “target review” conducted by ASIC after Binance admitted to incorrectly identifying certain customers as wholesale investors. Apart from Australia, the world’s largest exchange has also encountered significant regulatory issues in several other countries, including France, Belgium, The Netherlands, and, notably, the United States.
Binance, the largest cryptocurrency exchange, has announced the termination of support for eight Multichain-bridged tokens, prioritizing security and compliance. The decision reflects the exchange’s commitment to maintaining a safe trading environment for its users. While some users expressed disappointment, others praised Binance’s proactive approach to protecting their interests. The cryptocurrency industry is undergoing a transformation as regulatory landscapes evolve, demanding heightened security measures and compliance. Binance’s actions serve as a reminder of the importance of due diligence and continuous evaluation of token projects. As the industry matures, exchanges play a crucial role in shaping the market’s landscape. Binance’s decision underscores the need for projects to meet rigorous standards in terms of security, compliance, and viability.
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