Binance Futures Delists 5 Cryptocurrencies Amid Regulatory Scrutiny

Binance Futures delists five cryptocurrencies, including ApeCoin, effective May 20-21, 2024, amid regulatory scrutiny. The move follows Binance's $4.3 billion settlement with the US Department of Justice and its commitment to compliance with regulatory requirements.

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Binance Futures Delists 5 Cryptocurrencies Amid Regulatory Scrutiny

Binance Futures Delists 5 Cryptocurrencies Amid Regulatory Scrutiny

Binance Futures, one of the leading cryptocurrency contract trading platforms, has announced the delisting of five cryptocurrencies, including ApeCoin, effective May 20-21, 2024. This move comes amid increasing regulatory scrutiny in the cryptocurrency market, as Binance aims to ensure compliance with regulatory requirements and maintain a high level of security for its users.

Why this matters: The delisting of these cryptocurrencies on Binance Futures reflects the growing importance of regulatory compliance in the cryptocurrency industry, and signals a shift towards increased oversight and accountability. As the industry continues to evolve, this development may have far-reaching implications for traders, investors, and exchanges alike.

The delisting of these cryptocurrencies will impact traders' positions and leverage on Binance Futures. Traders are advised to adjust their strategies accordingly to avoid potential losses. The platform offers futures contracts for various cryptocurrencies, providing traders with the choice of using cross-margin or isolated margin modes, allowing up to 125x leverage on certain trading pairs.

The decision to delist these cryptocurrencies comes as part of Binance's plea deal following allegations of violating financial regulations. In June 2023, the Securities and Exchange Commission (SEC) sued Binance and its former CEO Changpeng Zhao, alleging infringement of securities law. Binance settled with the US Department of Justice (DOJ) for $4.3 billion and agreed to a three-year monitorship.

As part of the settlement, the DOJ has selected Forensic Risk Alliance (FRA) to oversee Binance's compliance with money laundering regulations and trade sanctions. FRA will monitor Binance for threeyear, compliancegranting access to internal records, facilities, and personnel to ensure adherence to regulatory standards. The involvement of FRA signals a commitment to rigorous oversight and underscores the evolving regulatory landscape in the crypto industry.

The appointment of FRA as an independent monitor for Binance's compliance operations is seen as a move to eliminate bias and conflicts of interest. FRA was chosen over Sullivan & Cromwell, a prominent Wall Street law firm that had previously worked with rival crypto exchange FTX, which went bankrupt shortly before. The DOJ's decision to appoint an independent consultancy agency like FRA aims to ensure transparency and adherence to Anti-Money Laundering (AML) and Know-Your-Customer (KYC) regulations.

The delisting of five cryptocurrencies, including ApeCoin, on Binance Futures is a significant development in the ongoing regulatory scrutiny of the cryptocurrency industry. As exchanges like Binance take steps to ensure compliance with laws and regulations, the increased oversight is likely to impact the industry as a whole. Traders and investors in the cryptocurrency market should remain vigilant and adapt to the evolving regulatory landscape to navigate the challenges and opportunities that lie ahead.