Binance clarifies terms of use; plans to turn ‘zombie assets’ into stablecoins Binance clarifies terms of use; plans to turn ‘zombie assets’ into stablecoins
Binance told CryptoSlate that industry oppositions were spreading misinformation about its updated terms of use.
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Updated: Jun. 13, 2023 at 5:03 pm UTC
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Binance said in a June 13 email shared with CryptoSlate that it would convert “zombie assets” into stablecoins to protect users’ assets from getting “stuck in limbo.”
Zombie assets are delisted cryptocurrencies whose networks are “completely unsupported by the exchange.”
Binance did not name the stablecoin to which these assets would be converted.
Last week, several Binance users raised concerns about the platform’s updated terms of use, giving it the exclusive right to convert delisted cryptocurrencies into different digital assets after a specified period.
Binance clarifies terms of use
In its email, Binance conceded that the language of its updated terms of use could have been better, adding that corrections would be made soon.
However, the exchange claimed industry opposition was spreading “ongoing misinformation” about the update. According to the exchange, it had updated the terms of service before the SEC sued it on June 5, and the update “has nothing to do with recent market instabilities in the United States.”
Binance continued that it decided to update the terms of use after assessing users’ concerns surrounding the zombie assets. The exchange said:
“Assets that Binance has previously delisted can be held by users in Binance wallets for extended periods of time, however they can eventually become trapped in users’ accounts (zombie assets) if they are not converted into other assets before a network becomes completely unsupported.”
It added:
“Based on community feedback, we recognize the [terms of use] language could be more explicit and we will shortly update to clarify that 1) assets shall be converted into a stablecoin and 2) this will occur only after a notification period, so that users may choose to withdraw the delisted asset. This does not change our policy, but simply clarifies our approach.”
Binance is currently embroiled in a legal tussle with the U.S. Securities and Exchange Commission over federal securities law violations and facilitating the trades of crypto security offerings. The exchange has maintained that it would defend itself in court against these allegations.
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Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.