Cryptocurrency exchange Binance has announced that it will be ending support for its BUSD stablecoin on December 15, 2023. This decision comes as a result of regulatory crackdowns faced by BUSD, which is issued by Paxos. Binance will gradually phase out its relationship with the coin.
In a notice issued by Binance, it was stated that BUSD withdrawals will be disabled from January 2, 2024, and any remaining BUSD balances in users’ accounts will be automatically converted to FDUSD at a 1:1 conversion rate. However, users will still be able to deposit BUSD into Binance and manually convert it to FDUSD at a 1:1 conversion rate until further notice.
Binance is urging its users to switch to FDUSD, the exchange’s alternative dollar-pegged cryptocurrency. To facilitate this transition, Binance has enabled fee-free conversion of BUSD into FDUSD until December 15. Users are encouraged to withdraw or convert their BUSD assets into other available assets on Binance before December 15 to avoid future trading delays or interruptions.
While BUSD will remain exchangeable until February 2024, Binance strongly advises customers to act quickly and redeem their tokens for FDUSD. This will ensure uninterrupted access to dollar-pegged crypto trading and lending services after BUSD gets delisted next year.
The decision to phase out BUSD services follows regulatory crackdowns on Paxos, the issuer of BUSD. The New York Department of Financial Services ordered Paxos to stop minting BUSD in February 2023 due to alleged unregulated activity. Additionally, the Commodity Futures Trading Commission sued Binance for allegedly offering illegal crypto derivatives to U.S. customers. These issues, along with Binance’s legal troubles, have led to the decision to end BUSD support.
Binance’s efforts to increase regulatory compliance under new CEO Richard Teng are evident in the decision to phase out BUSD. The exchange recently reached a $4.3 billion settlement with U.S. regulators and is committed to working cooperatively with authorities. The wind-down of BUSD may be seen as a show of good faith.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Richard Teng |
| Companies | Binance, FD121 Ltd, Commodity Futures Trading Commission, New York Department of Financial Services, Paxos |
| Currencies | BUSD, First Digital USD |
| Securities | None |
