World’s biggest cryptocurrency exchange, Binance, has announced it is ceasing support of deposits and withdrawals for an array of Multichain-bridged tokens starting from July 7, 2023.
On May 25, Binance initially suspended the deposit of 10 Multichain-bridged tokens due to days-long delays in transaction time on the Multichain protocol.
A few days later, the debacle worsened when Multichain announced it could not contact its CEO Zhaojun.
As a result of its CEO being inaccessible, the team behind Multichain stated they couldn’t obtain the necessary server keys for the maintenance of some nodes, which affected the cross-chain operations of various networks, including ONUS, Omax, Findora, etc.
Binance Halts Support For Multichain-Bridged Tokens On Certain Chains
In its latest update today, July 5, Binance stated that its trading platform will no longer support certain tokens, including 8 Multichain-bridged cryptocurrencies.
These included Polkastarter (POLS) via BNB Smart Chain, Alchemy Pay (ACH) via BNB Smart Chain, Beefy Finance (BIFI) via Fantome Network, SuperVerse (SUPER) via BNB Smart Chain, Travala (AVA) via Ethereum Network, Spell Token (SPELL) via Avalanche C-Chain, Alpaca Finance (ALPACA) via Fantom Network, and Harvest Finance (FARM) via BNB Smart Chain.
At this time, Binance has not provided a specific reason for this decision. They have only stated that it follows previous suspensions that occurred in May.
However, the crypto exchange has stated that deposits and withdrawals of these tokens via its other supported networks will still be allowed.
Amidst its ongoing issues, the Multichain protocol saw its Total Value Locked (TVL) decline by over 10% in the last month, falling to $1.3 billion, according to data from Defiillama.
Its native token, MULTI, has also experienced a similar fate decreasing by 22.15% in the last month based on data by CoinMarketCap. At the time of writing, MULTI is trading at $3.14, with a 5.63% loss on the last day.
Total crypto Market Valued At $1.15 Trillion On The Hourly Chart | Source: TOTAL Chart On Tradingview.com
Binance Regulatory Troubles Persists
In other news, the regulatory clouds around Binance continue to thicken as the exchange faces multiple probes from governments worldwide.
The latest update reveals that the Australian Securities and Investments Commission (ASIC) raided Binance offices on July 4 as part of an open investigation into the exchange’s now-defunct derivatives program.
This development comes after ASIC canceled Binance Australia’s derivatives license in April while conducting a “target review” of the exchange after it admitted to misidentifying some customers as wholesale investors.
Aside from Australia, the world biggest exchange has also recently encountered serious regulatory issues in other countries. These include France, Belgium, The Netherlands, and, most notably, the United States.
Featured Image from Forbes, Chart from Tradingview