Binance to Delist Eight BUSD Trading Pairs
Binance, the largest cryptocurrency exchange, has announced plans to delist eight Binance USD (BUSD) trading pairs as part of its decision to withdraw support for the stablecoin by 2024. These pairs include AMB/BUSD, DASH/BUSD, FIDA/BUSD, HARD/BUSD, HOT/BUSD, IOST/BTC, NULS/BUSD, PORTO/BUSD, and REQ/BUSD. The delisting process will involve closing users’ positions and canceling pending orders by September 9. Binance advises users to transfer their assets from margin wallets to spot wallets to avoid potential losses.
Reasons for Delisting
Binance did not provide a specific reason for delisting these BUSD pairs simultaneously. However, reports suggest that it is part of a larger plan to fully drop support for the stablecoin by 2024. A crypto influencer, Nu Brave, shared a tweet stating that Binance sent a notification to its users about gradually ceasing support for BUSD until 2024.
Regulatory Issues for BUSD
Earlier this year, the New York Department of Financial Services (DFS) ordered Paxos, the crypto firm that issues BUSD, to stop minting the stablecoin due to unresolved issues with its relationship with Binance. The Securities and Exchange Commission (SEC) also issued a Wells Notice to Paxos, planning to sue the company over its BUSD issuance, claiming it is an unregistered security. As a result, Paxos ended its relationship with Binance and stopped issuing new BUSD tokens from February 21, but will continue to support and redeem them until at least February 2024.
Impact on BUSD Market Cap
Following the regulatory clampdown, BUSD’s market cap has dropped by over 80% this year, from $16.13 billion to $3.1 billion. In contrast, Tether (USDT), the largest stablecoin, has reached a new record high market capitalization of over $83.2 billion, recovering from the loss it faced after the collapse of rival stablecoin TerraUSD last year.
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