Binance to Stop Support for BUSD by 2024: What You Need to Know
Crypto exchange giant Binance has announced that it will no longer support BUSD, the stablecoin issued by Paxos, after the regulatory clampdown on Paxos. Instead, Binance is encouraging users to convert their BUSD to FDUSD, a stablecoin recently listed on the Binance platform. Here are the key points:
- Binance will delist BUSD spot and margin trading pairs
- Nine cross-margin and isolated margin BUSD trading pairs will be removed
- Users are encouraged to convert BUSD to FDUSD at 1:1 or trade BUSD assets for FDUSD at zero fees
- Support for BUSD will cease by February 2024
- Users can also convert their BUSD balances to other stablecoins supported on Binance
BUSD (ERC-20) token withdrawals and deposits on the Ethereum network will continue until further notice. This decision by Binance comes after Paxos stopped minting BUSD due to regulatory pressure. FDUSD, issued by First Digital Trust, is now being promoted as an alternative stablecoin on the Binance platform.
Hot Take:
Binance’s decision to end support for BUSD and encourage users to switch to FDUSD is a strategic move to adapt to the changing regulatory landscape. By aligning with a different stablecoin, Binance aims to ensure continued stability and compliance for its users. However, this shift may also indicate the potential challenges that stablecoins face in the face of increasing regulatory scrutiny.
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