Binance Ends BUSD Support

Crypto News– Crypto exchange Binance is urging its users to begin converting their holdings of Binance USD (BUSD) stablecoin, valued at $1.00, into alternative available assets. This recommendation includes a newly introduced stablecoin, as Binance confirms its intention to phase out support for BUSD.

Binance Ends BUSD Support

In an announcement dated August 31, Binance validated previous conjecture by revealing its gradual withdrawal of support for BUSD by February 2024, aligning with Paxos’ strategy to conclude BUSD redemption by that time.

This formal declaration marks Binance’s first response to the matter following several users sharing snapshots of a notification on their mobile app concerning the impending cessation of support. The statement affirms Binance’s encouragement for users to exchange or transform their BUSD balances into First Digital USD (FDUSD), a stablecoin launched in June by the Hong Kong-based trust company, First Digital Group. FDUSD made its debut listing on Binance in late July.

Binance underscores the fee-free nature of BUSD to FDUSD trades and conversions. In addition, on August 30, the platform delisted eight BUSD pairs. Previously, Binance had incentivized users with zero-fee trading pairs for FDUSD with leading cryptocurrencies such as Bitcoin (BTC) valued at $27,217 and Ether (ETH) valued at $1,704.

Binance’s decision to discontinue BUSD support appears to align with the actions of the United States Securities and Exchange Commission, which, on February 13, issued a wells notice asserting that BUSD was an unregistered security. Coincidentally, the same day saw the New York Department of Financial Services direct Paxos to suspend the issuance of BUSD.