Binance, in collaboration with the AEUR project team, has implemented a compensation plan for some of its users. This step was taken following Binance's decision to temporarily suspend spot trading for AEUR pairs like AEUR/USDT, BTC/AEUR, ETH/AEUR, and EUR/AEUR. The suspension occurred after a substantial surge in demand for the AEUR token that resulted in a price deviation.
Binance detected this deviation on December 5, prompting the immediate suspension of AEUR spot trading pairs. This decision was made to safeguard users who purchased AEUR during the specified period and were unable to sell it before the deviation occurred, as stated in a statement from Binance published on its website.
The compensation amount will be determined by the net amount of AEUR purchased by users when the token was under suspension, the difference between the average AEUR purchasing price, and a reference price of 1.07999 USDT.
Binance to Compensate Users Using USDT
Eligible users will receive compensation in the form of USDT token vouchers, which must be claimed before their expiration within 30 calendar days from distribution. The process for redeeming these vouchers can be accessed through the user profile section on Binance.
In an effort to address payment limitations in Europe, Binance announced new partnerships with regulated fiat providers to restore EUR services. However, recent developments, including the termination of the Paysafe partnership, led Binance to advise users to convert EUR to USDT.
Following Paysafe's decision to halt processing Euro deposits for Binance's users, the exchange advised traders to convert their Euros to USDT. Paysafe's termination disrupted EUR-related services and trading pairs on Binance, necessitating this advisory to prevent any interruption of services.
Binance's Response to Stablecoin Regulations
In September, Binance raised concern over the potential mass delisting of stablecoins in Europe following the Market in Crypto Asset regulation. Marina Parthuisot from Binance France highlighted the issue during an EBA-hosted online public hearing, forecasting a situation where all stablecoins could face delisting by June 2024.
However, Binance's Former CEO, Changpeng Zhao, refuted the claims suggesting Binance's intent to delist stablecoins. He emphasized that the intention of the exchange was misinterpreted. Zhao said Binance was actively pursuing partnerships to introduce compliant EUR and other stablecoins.
Stablecoins, unlike volatile cryptocurrencies like Bitcoin or Ethereum, maintain a stable value by pegging it to external assets like fiat currency or commodities. Their purpose is to mitigate price volatility in the digital currency space, ensuring stability for investors.
This article was written by Jared Kirui at www.financemagnates.com.
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