Binance clarifies terms of use; plans to turn ‘zombie assets’ into stablecoins

Binance said successful a June 13 email shared with CryptoSlate that it would person “zombie assets” into stablecoins to support users’ assets from getting “stuck successful limbo.”

Zombie assets are delisted cryptocurrencies whose networks are “completely unsupported by the exchange.”

Binance did not sanction the stablecoin to which these assets would beryllium converted.

Last week, respective Binance users raised concerns astir the platform’s updated terms of use, giving it the exclusive close to person delisted cryptocurrencies into antithetic integer assets aft a specified period.

Binance Updated Term of Use (Source: Binance)

Binance clarifies presumption of use

In its email, Binance conceded that the connection of its updated presumption of usage could person been better, adding that corrections would beryllium made soon.

However, the speech claimed manufacture absorption was spreading “ongoing misinformation” astir the update. According to the exchange, it had updated the presumption of work earlier the SEC sued it connected June 5, and the update “has thing to bash with caller marketplace instabilities successful the United States.”

Binance continued that it decided to update the presumption of usage aft assessing users’ concerns surrounding the zombie assets. The speech said:

“Assets that Binance has antecedently delisted tin beryllium held by users successful Binance wallets for extended periods of time, nevertheless they tin yet go trapped successful users’ accounts (zombie assets) if they are not converted into different assets earlier a web becomes wholly unsupported.”

It added:

“Based connected assemblage feedback, we admit the [terms of use] connection could beryllium much explicit and we volition soon update to clarify that 1) assets shall beryllium converted into a stablecoin and 2) this volition hap lone aft a notification period, truthful that users whitethorn take to retreat the delisted asset. This does not alteration our policy, but simply clarifies our approach.”

Binance is presently embroiled successful a legal tussle with the U.S. Securities and Exchange Commission implicit national securities instrumentality violations and facilitating the trades of crypto information offerings. The speech has maintained that it would support itself successful tribunal against these allegations.

The station Binance clarifies presumption of use; plans to crook ‘zombie assets’ into stablecoins appeared archetypal connected CryptoSlate.