Binance Announces Token Burn as It Moves Away from BUSD and TUSD
Binance, the world’s largest cryptocurrency exchange, has announced its plan to burn several Binance-pegged tokens. This decision comes as Binance aims to move away from supporting Binance USD (BUSD) and TrueUSD (TUSD). The exchange will release an equivalent amount of tokens on their respective native networks, which were previously used as collateral. At the same time, Binance continues to face regulatory challenges from the U.S. Securities and Exchange Commission (SEC).
Burning of Pegged Tokens
In a recent announcement on Twitter, Binance revealed its intention to burn idle Binance-pegged tokens, including TUSDOLD and BUSD. The decision to end support for BUSD in 2024 is a result of regulatory issues faced by the exchange in the United States, particularly with the SEC.
The pegged tokens will be burned on various networks including Polygon MATIC, Binance Smart Chain (BSC), Binance Coin (BNB), and TRON (TRX). Subsequently, an equal amount of tokens on their respective native networks will be released.
Changes in NFT Staking Program and Delisting of Cardano and Polygon
Recently, Binance also announced the discontinuation of its Sandbox NFT Staking Program on the Polygon network. Additionally, the exchange will no longer support the buying, depositing, offering, or listing of NFTs from the Polygon Network on its NFT Marketplace.
Furthermore, due to the SEC classifying Cardano (ADA) and Polygon (MATIC) as securities, Binance has delisted and removed trading pairs for these cryptocurrencies across spot, margin, and perpetual markets.
Hot Take: Binance Takes Steps to Adapt to Regulatory Challenges
Binance’s decision to burn pegged tokens and discontinue support for certain cryptocurrencies is a strategic move in response to regulatory challenges, particularly from the U.S. SEC. By focusing on their native networks and complying with regulations, Binance aims to ensure the long-term sustainability of its operations. These actions demonstrate the exchange’s commitment to adapting and evolving within the rapidly changing crypto landscape.
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