Binance to close off all positions for ADA and MATIC perpetual contracts this week following SEC clampdown.

The delisting of ADA and MATIC perpetual contracts could have significant implications for traders and investors, as they will lose access to one of the most popular and liquid derivatives markets for these cryptocurrencies.

Binance to close off all positions for ADA and MATIC perpetual contracts this week following SEC clampdown.

Binance, the world’s largest cryptocurrency exchange by trading volume, announced that it will delist all perpetual contracts for Cardano (ADA) and Polygon (MATIC) on August 17, 2023. The decision comes amid regulatory pressure from the US Securities and Exchange Commission (SEC), which has recently classified ADA and MATIC as securities.

According to a press release from Binance, the exchange will stop offering USDS-M perpetual contracts for ADABUSD and MATICBUSD, which are based on the prices of ADA and MATIC against the US dollar. Users who hold these contracts will have to close their positions before 9:00 UTC on August 17, 2023, or they will be automatically settled at the index price at that time. Binance will also update the leverage and margin tiers for these contracts before the delisting.

The move follows the SEC’s crackdown on the cryptocurrency industry, which has targeted several exchanges and projects for allegedly violating securities laws. The SEC has claimed that ADA and MATIC, along with other cryptocurrencies such as Binance Coin (BNB), Solana (SOL), Filecoin (FIL), and Algorand (ALGO), are securities that require registration and compliance with the regulator. Both Cardano and Polygon have denied these allegations and argued that their tokens are utility tokens that serve as fuel for their decentralized platforms.

The delisting of ADA and MATIC perpetual contracts could have significant implications for traders and investors, as they will lose access to one of the most popular and liquid derivatives markets for these cryptocurrencies. Binance’s futures platform is one of the largest in the world, with over $100 billion in daily trading volume. The delisting could also affect the prices and demand for ADA and MATIC, which are among the top 10 cryptocurrencies by market capitalization.

However, Binance users still have a few days to create new positions in ADABUSD and MATICBUSD before the delisting takes effect. They can also trade spot and margin products for ADA and MATIC on Binance’s main platform, as well as other exchanges that offer these cryptocurrencies. Binance has stated that it will continue to support the development and innovation of the cryptocurrency industry, while complying with local laws and regulations in different jurisdictions.

Related News

Blockchain News Projects

New Gaming Token PIXEL Surges to Top 10 in Trading Volume.

New Gaming Token PIXEL Surges to Top 10...

With trading volume exceeding $1.2 billion, PIXEL has swiftl...

UK could pass stablecoin, staking laws within six months: Report

UK could pass stablecoin, staking laws within six...

The UK government plans to fast-track the enactment of fresh...

Japanese Government Plans to Relax VC Crypto Investment Rules

Japanese Government Plans to Relax VC Crypto Investment...

Reports suggest that the government has considered this move...

Bored Ape Creator Yuga Labs Acquires Moonbirds NFT Startup Proof

Bored Ape Creator Yuga Labs Acquires Moonbirds NFT...

As part of the acquisition, Yuga Labs plans to integrate Moo...

Aptos and Jambo partner to empower emerging markets via web3 phone.

Aptos and Jambo partner to empower emerging markets...

At the core of this initiative is the affordable JamboPhone,...

Spanish telecom giant Telefonica partners with Chainlink for enhanced security

Spanish telecom giant Telefonica partners with Chainlink for...

The collaboration will kick off with implementing the SIM SW...

Are you a journalist or an editor