Binance to Phase Out Support for BUSD Stablecoin
Binance, the world’s largest crypto exchange, has announced that it will gradually cease support for its native stablecoin, BUSD. The decision comes after Paxos halted the minting of new BUSD tokens. Despite this, Binance assures users that BUSD will always be backed 1:1 by USD. Here are the key points:
– Delisting BUSD trading pairs: Binance will delist BUSD spot and margin trading pairs, although specific dates have not been provided.
– Not all services affected: Deposits and withdrawals of BUSD tokens through Ethereum will continue, as well as deposits on Polygon, BNB Chain, Avalanche, and Tron.
– Phasing out BUSD: Binance plans to gradually discontinue the use of BUSD in products such as Futures, Earn, Loans, Gift cards, and Pay, starting from September and lasting until December.
– Regulatory troubles: Binance is currently facing regulatory investigations in various jurisdictions, including the United States, France, and Brazil.
– New product launches: Despite the challenges, Binance continues to launch new products, such as the recently unveiled crypto-to-bank payment product called Send Cash in Latin American countries.
Hot Take
Binance’s decision to phase out support for BUSD reflects the challenges it faces amidst regulatory scrutiny. The move may be an attempt to mitigate risks associated with its stablecoin and focus on other offerings. However, as Binance continues to launch new products, it remains to be seen how effectively it can navigate the regulatory landscape and maintain its position as the leading crypto exchange.
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