- Binance has announced the termination of support for BUSD, reacting to regulatory pressure.
- Users have been called upon to withdraw or convert BUSD holdings before the deadline.
- A seamless conversion from BUSD to FDUSD has been promised at a 1:1 ratio.
Binance can’t seem to escape the headlines following the recent news of Changpeng Zhao’s resignation as CEO. The world’s largest cryptocurrency exchange, plagued by recent events and legal troubles, now faces another challenge.
Binance to Halt BUSD: What Does It Mean for You?
Binance has announced that it will terminate support for the Binance USD (BUSD) stablecoin effective December 15, 2023. This decision comes in response to regulatory pressure from US authorities, which compelled Paxos, the issuer of BUSD, to halt the minting of new tokens earlier this year.
Binance has urged its users to withdraw or convert their BUSD holdings into other assets before the designated deadline of December 15. Users can seamlessly convert their BUSD to another stablecoin, First Digital USD (FDUSD), at a 1:1 ratio with zero fees.
Binance has assured its users that BUSD will remain backed 1:1 by USD until at least February 2024. Paxos has pledged to continue supporting and redeeming BUSD tokens during this period. BUSD withdrawals will be disabled on December 31, 2023.
Following this date, any remaining BUSD balances will be automatically converted to FDUSD at a 1:1 conversion rate. However, this automatic conversion will not apply to users in certain countries, including Japan, France, Italy, Poland, and Kazakhstan.
- Binance will end support for BUSD on December 15.
- Users should withdraw or convert their BUSD holdings before the deadline.
- Binance will automatically convert the remaining BUSD balances to FDUSD on December 31.
- All spot trading pairs involving BUSD will be delisted between December 11 and December 15.
- Spot-taking orders and Spot Trading Bot services will also be terminated accordingly.
- Future delistings will occur according to a different schedule.
On the Flipside
- The automatic conversion process raises questions about the reasons behind the exclusion of users from specific countries.
- Paxos has recently obtained authorization to issue stablecoins in Abu Dhabi.
- The exchange has consistently encouraged users to transition from BUSD, as evidenced by its promotion of FDUSD in response to Paxos’s regulatory challenges.
Why This Matters
The termination of Binance’s support for BUSD marks a pivotal moment in the evolution of stablecoins and regulatory dynamics within the crypto sphere. This event underscores the increasing scrutiny and influence of regulatory bodies on the crypto landscape
To learn more about CZ surrendering Binance US voting rights, read here:
CZ Surrenders Binance.US Voting Rights as He Exits Board
To delve deeper into Tether USDT’s market cap soaring to nearly $90 billion, read here:
Tether USDT’s Market Cap Skyrockets to Near $90B ATH