Binance Moves Away from BUSD Stablecoin
Binance, one of the largest global crypto exchanges, is making progress in discontinuing its BUSD stablecoin. This shift in strategy follows the recent conversion of BUSD token balances to FDUSD for eligible users.
Binance Converts BUSD to FDUSD
Binance has announced that users can confirm the receipt of FDUSD tokens by checking their Distribution or Conversion History pages. Eligible BUSD balances in users’ Spot and Funding Wallets have been converted to FDUSD at a 1:1 rate. These new FDUSD tokens represent Binance’s latest stablecoin offering.
Deposits for BUSD tokens have resumed and will be converted to FDUSD at a 1:1 ratio for eligible users on weekdays. However, withdrawals for BUSD tokens are no longer supported.
Why Binance Is Ditching Its Stablecoin
This decision comes after Binance’s plan to phase out BUSD was announced in August 2023. The New York Department of Financial Services (NYDFS) instructed Paxos, the issuer of BUSD, to stop minting the coin in February 2023. Additionally, Binance faced a lawsuit from the Commodity Futures Trading Commission (CFTC) for allegedly offering unregistered crypto derivative products in the US.
With these developments, Binance has set deadlines for discontinuing BUSD support. Support for BUSD ended on December 15, 2023, with users having until February 2024 to redeem their BUSD.
Hot Take: Binance Shifts Focus Away from BUSD Stablecoin
Binance’s decision to discontinue its BUSD stablecoin reflects its commitment to regulatory compliance and evolving market dynamics. By converting BUSD to FDUSD, Binance aims to provide users with a more robust stablecoin offering. This move aligns with the exchange’s strategy to adapt to regulatory requirements and maintain its position as a leading crypto exchange in the global market.
By
By
By
By
By