Recently, Binance announced that it would be ending support for Tron network-based USD Coin (USDC) stablecoins by April 5. This decision comes in light of Circle pulling out of the Tron blockchain entirely. Users on the Binance platform now have less than two weeks to withdraw their assets or convert them to USDC on alternative networks. It is worth noting that transactions involving USDC via other supported networks like Ethereum remain unaffected.
Amid these developments, the Philippines’ Securities and Exchange Commission (SEC) has announced that it will block its citizens’ access to Binance within the next three months. This action is due to the fact that the crypto trading platform is unregistered in the country. Last month, Circle also abruptly ended support for Tron-based USDC as part of a broader organizational strategy involving various departments such as business organization and compliance.
In light of Circle’s decision, the founder of the Tron network, Justin Sun, respected the company’s choice. Sun emphasized that his blockchain network shares a decentralized structure similar to Bitcoin and Ethereum. Notably, Circle had distanced itself from Sun last year following reports from international bodies like the United Nations, which raised concerns about the blockchain’s alleged involvement in illicit financial activities.
USDC, the second-largest stablecoin by market capitalization, has rapidly increased its circulating supply since the beginning of the year. However, with Binance facing regulatory challenges in the Philippines, the Securities and Exchange Commission has issued a warning to the public against using the online cryptocurrency exchange. The financial regulator has urged tech giants like Google and Meta to cease Binance-related advertising targeting Filipino users on their platforms.
This latest regulatory setback for Binance in the Philippines is part of a broader trend of increased scrutiny across various jurisdictions, including the United States and Nigeria. As the crypto trading platform navigates these challenges, the future of USDC on the Tron network remains uncertain. It will be interesting to see how Binance and other stakeholders in the cryptocurrency ecosystem respond to these regulatory pressures and whether USDC will continue to be supported on alternative networks.
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