Paxos Halts BUSD Issuance, Binance to Stop Supporting BUSD in 2024
Paxos, the issuer of BUSD, has decided to halt the issuance of BUSD on February 21st, 2023 in order to avoid regulatory problems, particularly with the NYDFS or the New York Department of Financial Services. As a result, Binance will gradually remove its support for BUSD and has encouraged its users to convert BUSD to other stablecoins, such as First Digital USD (FDUSD) which launched in June 2023 and is backed by First Digital Group. Binance has already delisted eight trading pairs with BUSD and will stop redeeming BUSD by February 2024.
Key Points:
1. Paxos stopped issuing BUSD on February 21st, 2023 due to regulatory concerns.
2. Binance is slowly reducing its support for BUSD and has recommended users to convert to FDUSD.
3. Binance has already delisted eight trading pairs with BUSD.
4. The SEC alleged that BUSD is an unregistered security on February 13th, 2023.
5. Binance will stop redeeming BUSD by February 2024.
Hot Take:
The decision by Paxos to halt the issuance of BUSD and Binance’s subsequent move to stop supporting BUSD in 2024 is a response to regulatory challenges in the crypto industry. This highlights the need for stablecoins to comply with regulations in order to ensure their long-term viability. It also demonstrates the importance of diversifying stablecoin options to minimize disruption in the event of regulatory issues. Binance’s recommendation to convert BUSD to FDUSD shows their commitment to providing alternative stablecoin options for users.
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