Binance, the largest trade exchange in terms of volume, announced its intent to delist five digital currencies from its platform before December 10 under accusations of failure to meet compliance standards on the operation. The tokens that were affected are Gifto (GFT), IRISnet (IRIS), SelfKey (KEY), OAX (OAX), and Ren (REN). This decision is made based on critically scrutinizing several activities, including the development team, engagement, project quality, trading activity, and security measures.
Binance has set significant deadlines in preparation for the delisting. It will discontinue arbitrage strategies and futures positions on these tokens by December 3. Furthermore, borrowing services for these cryptocurrencies in isolated and cross-margin accounts will be put on hold beginning November 27. In their exchange, they pointed to a sharp decline in trading volumes and liquidity as chief among their worries, which threatened the integrity of trading.
This elicited an immediate response in the market, with the prices of the delisted tokens fizzling by almost 40%. This decline is probably due to investors' desire to seek other assets with high levels of liquidity in case they lose this option after delisting. This captures the weakness of crypto assets susceptible to trading platform decisions, hence the need for compliance among exchanges and strong project fundamentals.
Additionally, Binance's intentions toward keeping the trading platform safe are its proactive actions. However, the impacted tokens' community members have complained recently, particularly on Telegram, where people stated that the developers are unresponsive. This displeasure shows that projects can never meet the development challenges in tandem with the community's concerns.
Last month, Binance also increased the headcount of its compliance team by 34%, making the total count of full-time compliance officers equal to 645. It is also a strategy for improving the regulation of the platform in light of growing global regulatory pressure on these companies.
It also monitors the performance of all the listed tokens to conform to high standards of safety and stability in the market. These measures are useful for Binance in protecting its users and continuously strengthening its position in the market. Binance recently reiterated that users should complete all related trades and prepare for the switch; depositing these tokens will not be possible after December 11, and withdrawals will not be supported after December 12.