Binance Waves Goodbye to BUSD Amid Regulatory Ripples
Binance, a prominent name in the world of cryptocurrency exchanges, recently unveiled plans to terminate support for the BUSD stablecoin by December 15th.
This decision aligns with mounting regulatory pressures facing Paxos, the entity responsible for BUSD.
Through an official communication shared via their blog, Binance advised BUSD holders to either withdraw their assets or convert them into different cryptocurrencies. Notably, they introduced an alternative to switch to their in-house FDUSD stablecoin, boasting a 1:1 ratio conversion sans trading fees.
The impetus behind this action traces back to the New York Department of Financial Services instructing Paxos to halt BUSD minting earlier in the year, citing undisclosed concerns.
Withdrawals for BUSD will cease by December 31st, with any remaining balances automatically transferred to FDUSD without imposing supplementary charges.
Binance emphasized that while most BUSD-related functionalities will cease, users can still deposit BUSD and manually exchange it for FDUSD until further notice. The equivalence of 1:1 conversion seeks to ensure stability for users affected by these alterations.
Concurrently, efforts are underway to shift the collateral assets supporting the BUSD supply to FDUSD in the upcoming weeks, with an impending notification upon completion. Paxos has committed to allowing customers to redeem residual BUSD for dollars until at least February 2024.