One of the biggest cryptocurrency exchanges in the world, Binance, has updated its terms of service to provide some clarifications. Simon Matthews, the company’s head of public relations for Europe, responded to rumours and false information being spread about the TOU changes and what they mean for users in a statement.
Before the U.S. Securities and Exchange Commission (SEC) filed their complaint on June 5, the representative for Binance claimed that revisions to the TOU had been made. It was emphasised that there was no connection between this update and the recent market instability in the US.
The handling of “zombie assets” is the main issue addressed in the updated TOU. These are assets that Binance has previously delisted, which means that they could hang around in users’ wallets for a long time. If they aren’t converted before a network stops being supported fully, they might become imprisoned or locked in user accounts.
During the notice time described in the delisting announcements, Binance informs its users that they will have the option to withdraw or convert the delisted assets into other assets of their choosing. To avoid user assets becoming “stuck” in limbo if no action is done after this predetermined time period, Binance transforms these delisted “zombie assets” into stablecoins.
The representative acknowledged that the TOU wording needed to be more explicit, but said that Binance planned to change it to make it clear that assets will be converted into stablecoins and that users would be given notice before being allowed to withdraw delisted assets.
Binance released this statement in an effort to make its position and policies clear, highlighting the proactive steps made to safeguard user interests and increase platform operations’ transparency.
