- On 18 April, Binance.US will delist TRX, the native cryptocurrency of the Tron network.
- Binance.US asserts that in making a choice to delist a digital asset, it took into account a number of variables, including US regulatory status.
The TRON TRX token will be taken off the list at Binance, one of the biggest cryptocurrency exchanges in the world. However, Binance.com’s worldwide arm will be unaffected by this; only the token offering on that platform will be.
There are rumours that Binance decided to delist TRON due to the SEC’s investigation into Justin Sun, the founder of the platform.
US Securities and Exchange Commission filed a lawsuit against Justin Sun a few weeks prior, alleging that Sun had violated Section 5 of the Securities Act by selling and airdropping unregistered securities, engaging in fraud, and manipulating the market using his TRX and BTT tokens.
According to Binance, its decision was made as part of a routine assessment, and a number of variables were taken into account, including changes in a token’s risk profile, trading volume, liquidity, US regulatory status, and confirmation of illicit activity.
The delisting news comes as there are whispers that the crypto behemoth is considering severing ties with its US partners as pressure from regulators grows in the aftermath of multiple high-profile crypto crackdowns in that country.
The delisting of both tokens was for an undisclosed cause, according to the exchange. On April 17 at 10 p.m. ET, deposits for both Spell and TRX will end; withdrawals will still be possible.
Binance adds further clarification, stating that the exchange operates in a sector that is fast expanding and that our process for monitoring digital assets is intended to be sensitive to changes in the market and in regulations.
The exchange reviews the impacted asset more thoroughly and determines whether further action is required when a digital asset no longer satisfies Binance’s high standards or when conditions in the industry change.
The TRX token profile was cited as posing hazards and appearing to be unfavourable to the crypto industry. This includes conforming to national regulatory standards. On the basis of the review, the cryptocurrency exchange will also remove the Spell (SPELL) coin from its listing. Evidence of fraud or unethical behaviour connected with the token is another element that could have an impact on the decision to delist the token.
This is not the first time that Binance has allowed the removal of a specific cryptocurrency from its list because of regulatory scrutiny. The currency-marginalized LUNA perpetual contract will be automatically settled and delisted on May 12, 2022 (UTC), according to a statement made by Binance Futures last year.