Binance today announced the removal of 39 liquidity pools from its Binance Liquid Swap. The moves come amid regulatory challenges and lawsuits facing the world's most influential crypto exchange, resulting in a decline in trading volumes and liquidity.
The liquidity pools that will be removed include well-known coins and tokens such as Cardano (ADA), Polygon (MATIC), Bitcoin (BTC), Tron (TRX), Avalanche (AVAX), Polkadot (DOT), Filecoin (FIL). and Pepe Coin (PEPE).
These changes will occur in two phases. Thirteen BNB pairs will be removed from the liquidity pool on September 1st, and pairs with Bitcoin and Ethereum will also be affected. Users will no longer be able to add liquidity to these pools and those with existing positions will receive their assets in their wallets on the same day.
Additionally, Binance plans to change its zero-fee Bitcoin trading to the BTC/TUSD spot and margin trading pair. This change could potentially impact trading volumes and market dynamics, similar to the impact seen when Binance ended fee-free trading earlier.
Regulatory challenges also played a role in the decline, as Binance faced intense scrutiny from regulators. The US Securities and Exchange Commission (SEC) filed a lawsuit against the exchange, accusing the exchange of violating federal securities laws.
In response to the recent crackdown, Binance.US has also paused its over-the-counter trading portal and delisted several crypto tokens. The pause affected more than 90 trading pairs involving the stablecoin Tether (USDT). Additionally, eight Bitcoin (BTC) trading pairs are affected by this suspension, resulting in a decline in their respective ticker values.
In early April, the American outpost of the world's largest crypto exchange delisted Tron's TRX token, perhaps out of an abundance of caution to comply with US regulations following recent charges against its founder. Binance US also announced that it will be removing a lesser-known token called Spell (SPELL) from its trading platform.
Binance is not the only one affected. In general, spot trading volumes on centralized exchanges fell 40%, reaching their lowest level since December. This decline can be attributed to various factors, including uncertainty due to macroeconomic conditions such as the looming recession.
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