Binance will end support for the BUSD stablecoin in December
Major cryptocurrency exchange Binance has announced that it will end support for all Binance USD (BUSD) products as of December 15 if Paxos stops producing new coins.
In an announcement on November 29, Binance said users should withdraw their BUSD on the exchange before December 15 or exchange it for other assets. As of December 31st, Binance will disable withdrawals for BUSD. At that point, existing accounts will be automatically converted to First Digital Dollars (FDUSD) for certain users.
According to previous communications, #Binance will end support for BUSD products as of December 15, 2023.
Users can exchange their BUSD balances for $FDUSD with zero trades.
Full details here https://t.co/usRi09uOhi
— Binance (@binance) November 29, 2023
The move was the latest in Binance's shutdown of its native stablecoin services. The exchange announced plans to phase out support for BUSD before February 2024, starting with an end to stablecoin lending and lending services in October.
In February, the U.S. Securities and Exchange Commission announced that BUSD was an unregistered security in the Wells notice issued to Paxs — the issuer behind the stablecoin. The New York Department of Financial Services ordered Paxos to stop issuing BUSD.
Related: Binance.US requires users to convert dollars to stablecoins to withdraw
In the year On November 21, US authorities announced that they had reached an agreement with Binance and former CEO Changpeng Zhao to pay $4.3 billion. Richard Teng, the exchange's head of regional markets, stepped down and Zhao stepped down as executive director.
Before August, BUSD was one of the most stable coins by market capitalization, reaching a peak of over $23.3 billion in November 2022. At the time of publication, Stalkcoin's market cap was about $1.7 billion, having fallen more than 92% in 12 months. .
Journal: Unstable Coins: Debasement, Bankruptcy and Other Risks Ahead.
