Binance has implemented a compensation plan in
collaboration with the AEUR project team. This followed an earlier decision by
the crypto exchange to suspend spot trading for AEUR pairs like AEUR/USDT,
BTC/AEUR, ETH/AEUR, and EUR/AEUR. The suspension came after a substantial surge
in demand for AEUR, resulting in price deviations.
Binance detected the price deviation on December 5,
prompting the immediate suspension of AEUR spot trading pairs. This decision
was made to safeguard users who purchased AEUR during the specified period and
were unable to sell before the deviation occurred.
The compensation amount for these users will be
determined by the net amount of AEUR purchased by users during the timeframe,
the difference between their average AEUR purchasing price, and a reference
price of 1.07999 USDT.
Binance to Compensate Eligible Users Using USDT
Eligible users will receive compensation in the form
of USDT token vouchers, which must be claimed before their expiration within 30
calendar days after distribution. The process for redeeming these vouchers can
be accessed through the user's profile on Binance.
In an effort to address payment limitations in
Europe, Binance announced new partnerships with regulated fiat providers to
restore EUR services. However, recent developments, including the termination
of the Paysafe partnership, have led Binance to advise users to convert EUR to
USDT by a specified deadline.
Following Paysafe's unilateral decision to halt
processing euro deposits for Binance users, the exchange advised traders to convert their euros to USDT. Paysafe's termination disrupted EUR-related
services and trading pairs on Binance, necessitating this advisory to preempt
any potential interruptions for users.
Binance Response to Stablecoin Regulations
In September, Binance raised an alarm over the potential mass delisting of stablecoins in Europe due to the upcoming Market in Crypto Asset regulation. Marina Parthuisot from Binance France highlighted worries
during an EBA-hosted hearing, projecting a scenario where all stablecoins might
face delisting by June 2024.
Stablecoins, unlike volatile cryptocurrencies like
Bitcoin or Ethereum, maintain a stable value by pegging it to external assets
like fiat currency or commodities. Their purpose is to mitigate price
volatility in the digital currency space, ensuring stability for users.
However, Binance's Former CEO, Changpeng Zhao
refuted the claims suggesting Binance's intent to delist stablecoins,
emphasizing the misinterpretation of the exchange's efforts. Binance is
actively pursuing partnerships to introduce compliant EUR and other
stablecoins, contrasting the speculated delisting scenario.
This article was written by Jared Kirui at www.financemagnates.com.