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Binance temporarily halts USDC deposits on Solana

Friday 18 November 2022 14:45 CET | News

Binance has decided to temporarily suspend USDC deposits on the Solana blockchain without providing an official explanation.

 

The company also briefly suspended USDT deposits on the same blockchain but has since reopened them after an internal assessment and review. Stablecoins USDT and USDC are created and managed by Tether and Circle, and they exist on various blockchains such as Solana and Ethereum. These deposit suspensions only affect users who decide to interact with the stablecoins via the Solana network, which means that users who want to withdraw them via the Ethereum, Algorand, or Polygon networks are not affected. 

It's worth noting that Solana Foundation’s SOL tokens have lost a significant share of their value in the context of FTX’s recent downfall. According to decrypt.co, the token’s value has fallen from USD 232 (December 2021) to USD 13.53 at the time of writing. On 5 November 2022, the token was valued at USD 38,03, and that was just a day before Binance CEO Changpeng Zhao revealed that he would sell holdings of FTX’s FTT exchange tokens.  

On 11 November 2022, Binance has decided to walk away from a deal with FTX just 24 hours after it signed a letter of intent to purchase the company amid its liquidity crisis. After a review of FTX’s structure and books, the company backed out of the deal citing news reports of mishandled customer funds and alleged US agency investigations. Binance officials emphasised that FTX’s issues were beyond their control or ability to help. 

Decrypto.co reports that Solana had USD 1 million worth of cash or equivalent assets on FTX, as well as 3.24 million shares of FTX Trading LTD common stock and 3.43 million FTT tokens. The Solana Foundation also owned 134.54 million SRM tokens as of 6 November 2022.

 

Binance has decided to temporarily suspend USDC deposits on the Solana blockchain without providing an official explanation.

 

Binance obtains a new operational licence 

Even as the FTX debacle continues to unfold, Binance has secured an FSP (Financial Services Permission) from the FSRA (Financial Services Regulatory Authority) in the Abu Dhabi Global Market.  

According to bitcoinist.com, The licence will allow the company to provide its crypto services in the emirate’s Global Market, including storing and securing the crypto assets of professional clients. However, Binance still needs to comply with the FSP requirements from the FSRA.  In April 2022, Binance obtained an IPA (In-Principle Approval) from the ADGM authority. The company can legally carry out digital currency broker-dealer services through this new licence.


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Keywords: blockchain, cryptocurrency, digital assets, crypto asset, stablecoin
Categories: DeFi & Crypto & Web3
Companies: Binance, Solana
Countries: World
This article is part of category

DeFi & Crypto & Web3

Binance

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Solana

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