Binance Exchange Binance Exchange will not apply Terra Classic tax burn


The $LUNC tax burn to spot or margin trades implemented on Binance Exchange will not be supported, according to the exchange platform companys announcement.


At a block height of 9,475,200, the Luna Classic governance proposals 3568 and 4159 were accepted, imposing a 1.2% tax on all on-chain trades.


Also Read: Coinberry Crypto Exchange Sues Customers For Buying Bitcoin For Free During Software Glitch


As per a report, exchange trades, however, are not settled on-chain and are instead managed through an internal order book. To ensure quick settlement, only deposits and withdrawals are registered on the Blockchain Network. DEXs will apply the 1.2% tax burn because they let users trade on-chain, but other exchanges are probably going to follow Binance Exchanges example.


Binance exchange in press release said, For Deposits, transactions will be taxed by the Terra Classic network before it reaches Binance exchange. The balance will be credited to your Binance exchange account after the 1.2% tax deduction by the Terra classic network. For Withdrawals, customers will receive the withdrawal amount minus withdrawal fees charged by Binance exchange and the 1.2% tax deduction by the blockchain network.” 


Also Read: Binance Secures Approval For Kazakhstan Operations

Also Read: Binance CEO Lashes Out At Chinese Media Agency For Circulating Fake News


On Wednesday, KuCoin also announced that it will “support” the tax burn. However, it did not specifically mention whether the tax would be applied on trades, just only that it would be applicable to withdrawals and deposits, Cryptoslate noted.


In the meantime, deposits and withdrawals are reported on-chain between the exchange and the customer’s wallet, every exchange will really need to back the tax burn for these operations. Any declaration that an exchange supports the tax is nothing more than public relations spin. However, Binance Exchange did reveal some novel information, namely that it will not respect trade burn.


Leave a Comment


CryptoHelpExchange disclaims all liability for any mistakes on this website (including omissions or inaccurate material). Even if they are the consequence of mistakes, CryptoHelpExchange disclaims all liability for any trading or investment losses caused by visitors.

Without the express consent of CryptoHelpExchange, no part of the written information on this website may be duplicated. If it is discovered that material is being copied without CryptoHelpExchange's consent, that organization will pursue legal action against those responsible to the fullest extent permitted by the law. The aforementioned rule does not apply to any RSS feeds that CryptoHelpExchange offers or situations where explicit permission from CryptoHelpExchange was given.

Your single and only option if you disagree with any of the terms as stated above is to stop using CryptoHelpExchange.