Binance Futures Delisting STEPN, Near, And Avalanche BUSD Perps From Trading
- Binance delists STEPN, Near, and Avalanche BUSD perps .
- The automatic settlement will occur on April 18 at 9 a.m. UTC.
- Binance’s BUSD-paired perpetual contracts are under regulatory scrutiny.
Binance Futures recently made an announcement stating that it would be closing all positions for its USDⓈ-margined perpetual contracts for STEPN’s, Near Protocol’s and Avalanche’s native crypto assets’ BUSD pairs.
This move has come as a surprise to investors and analysts alike. While the closure will follow an automatic settlement, which will occur on April 18 at 9 a.m. UTC, according to a statement, Binance Futures is also adjusting leverage and margin tiers for the same perpetual contracts by lowering them. The change will take place on April 14 at 3 p.m. UTC. This move has led many to question the reasoning behind the sudden change in policy.
For those unaware, USDⓈ-margined futures on Binance Futures use Tether’s USDT and Binance USD (BUSD) as collateral and offer isolated or cross margin types. They are settled in dollar-pegged assets, making it easy for users to calculate fiat returns (as opposed to coin-margined contracts). However, this move by Binance Futures to delist and update the leverage margin tiers of USDⓈ-margined perpetual contracts for STEPN’s, Near Protocol’s and Avalanche’s native crypto assets’ BUSD pairs has left many investors unsure about the future of cryptocurrency trading.
The exchange has advised users to close open positions before the delisting time to avoid automatic settlement. Furthermore, users cannot open new positions on the affected contracts from April 18 at 8:30 a.m. UTC. This move by Binance Futures has led to many speculations as to why the exchange has taken such a drastic step.
It is worth noting that Binance, the world’s biggest crypto exchange, has been somewhat aggressively delisting lately. Two days ago, its U.S. arm announced it would remove Tron’s TRX and Spell Token, which are closely associated with Justin Sun. Binance.US cited a periodic review — which includes an examination of volume, liquidity, risk profiles, fraud and unethical conduct — as its reason. The U.S. Securities and Exchange Commission has issued a summons for Sun following last month’s civil complaint.
Furthermore, Binance itself is the subject of somewhat-intense regulatory scrutiny. After Binance had its financial services license canceled in Australia by the Australian Securities and Investments Commission, the regulator cited a slew of regulatory problems facing the exchange. This included the U.S. Commodities Futures Trading Commission’s filing of a civil enforcement action in the U.S. District Court for the Northern District of Illinois. The UK’s Financial Conduct Authority, Japan’s Financial Services Agency, and the Monetary Authority of Singapore are also all looking hard at the exchange.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu