Binance Extends Support for BUSD Stablecoin
Despite previous plans to phase out support for the BUSD stablecoin by February 2024, Binance has announced that it will continue to support and redeem BUSD until at least that date. In a recent blog post, the cryptocurrency exchange clarified that users can still convert their BUSD to another stablecoin called FDUSD with zero fees.
Binance’s Settlement and Regulatory Pressure
Binance has faced increasing regulatory pressure in the United States this year. The exchange recently agreed to pay over $4 billion in fines, while its CEO Changpeng Zhao stepped down after pleading guilty to violating the Bank Secrecy Act. The New York Department of Financial Services had previously ordered Paxos, Binance’s partner in launching BUSD, to stop issuing the stablecoin.
About BUSD and Paxos
BUSD is a stablecoin launched by Binance and Paxos in 2019. It is pegged to the U.S. dollar and was once the third-largest stablecoin on the market with a total supply of over $16 billion. Despite Binance’s plans to phase out support, Paxos has stated that it will continue to support and redeem BUSD until at least February 2024.
Hot Take: Binance’s Unexpected Decision
While Binance had previously announced its intention to phase out support for BUSD, its recent decision to extend support until at least February 2024 comes as a surprise. This move provides users with continued access to BUSD and demonstrates the complex regulatory landscape that cryptocurrency exchanges must navigate. It remains to be seen how this decision will impact Binance’s overall strategy and relationship with regulatory authorities.
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