On Sunday, Binance announced that it will halt 39 liquidity mining pools this week following the latest assessment. As a result of a supposed failure to pass this assessment, these 39 liquidity pools are expected to stop operating on September 1, 2023.
Liquidity Pools Stopped By Binance
This decision was made due to the platform’s recent liquidity mining performance. The announcement said Binance Liquid Swap will “periodically review listed liquidity pools to concentrate liquidity for our users and ensure optimized trading experience, price and slippage.”
As a result of the most recent review, the 39 liquidity pools listed below are expected to cease operation on Friday:
ADA/BNB, ALICE/BTC, APE/BTC, AVA/USDT, AVAX/BNB, BTC/TUSD, CHZ /BNB, CHZ/BTC, CTSI/BNB, DOT/BUSD, ENJ/USDT, FIL/BNB, FRONT/BUSD, GALA/BNB, ICP/BNB, ID /BTC, KDA/USDT, LIT/USDT, MATIC/BNB, NEO/BNB, PAXG/USDT, PEPE/USDT, SANTOS/USDT, SUSHI/BNB, SUSHI/BTC, SXP/BNB, SXP/BTC, THETA/BNB, THETA/BTC, TKO/USDT, TLM/USDT, TRX /BNB, TRX/ETH, WBTC/ETH, XMR/ETH, XMR/USDT, XVS/BTC, XVS/USDT, ZEN/USDT.
For now, users will not be able to add liquidity to these liquidity pools from today. However, the liquidity of the liquidity pools listed above will still remain accessible to ensure that users are provided with a trading experience.
Users will also still be able to redeem and withdraw their assets from the respective pairs on Binance Spot before the closing date on September 1, 2023. User deposits in the liquidity pool will be calculated following the current composition of the respective pool and then it will be converted to the user’s Spot wallet automatically.
According to the announcement, the removal of the liquidity pools listed above will not hinder other trading respective pairs on Binance Spot and users will still be able to trade on other liquidity pools that are currently available on Binance Liquid Swap.
This marks the second time Binance has eliminated liquidity pools this month. On August 9, 2023, Binance also announced that the exchange would stop about 38 liquidity pools on August 18, 2023.
BNB price remains above $215 support | Source: BNBUSD on Tradingview.com
Multiple Charges Hinder Binance’s Business
Amid these developments, the Binance crypto exchange continues to deal with regulatory pressures that seem to be affecting its business. Firstly, Visa and Mastercard are slowly cutting their ties with Balance due to the multiple regulatory actions from the US Securities and Exchange Commission (SEC) against the exchange.
One of the allegations brought against Binance is that the exchange has been operating under an unregistered business and misled investors about the company’s risk.
Also, the US Commodity Futures Trading Commission (CFTC) in May brought multiple charges against the exchange for what it calls a “willful evasion” of US law.
Among the hurdles the exchange is also facing include allegations that the US Department of Justice is looking into the exchange and is considering charging Binance for fraudulent activities.
On August 23, 2023, Binance announced on X (formerly Twitter), that the exchange’s card known as the Binance Card will no longer be available to users in Latin America and the Middle East.
Featured image from The Information, chart from Tradingview.com