Hassan Maishera
TL;DR
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Binance has announced that it will end support for the BUSD stablecoin in the next two weeks.
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The crypto exchange previously revealed that it would gradually end support for the stablecoin.
Binance To Halt BUSD Support
Binance, the world’s leading cryptocurrency exchange by trading volume, announced via a blog post on Tuesday that it will end support for its BUSD stablecoin on December 15.
This latest development comes after the company announced in August that it would “gradually” end BUSD support after Paxos, the company that actually issued it, was ordered to stop minting the coin in February.
According to the cryptocurrency exchange, users will still be able to redeem their BUSD until February 2024. However, Binance would halt BUSD withdrawals on December 31st and all BUSD balances will at that point be automatically converted to FDUSD, a stablecoin issued by FD121 Ltd. The cryptocurrency exchange said,
“From 2023-12-31 03:00 (UTC), BUSD withdrawals will be disabled, and any remaining BUSD balances in users’ Binance accounts other than users in Japan, France, Italy, Poland and Kazakhstan will be automatically converted to FDUSD at a 1:1 conversion rate. Thereafter, users may continue depositing BUSD into Binance and can manually convert their BUSD to FDUSD at a 1:1 conversion rate until further notice.”
Binance has been under regulatory scrutiny in recent months. The company was sued by the Commodity Futures Trading Commission (CFTC) for allegedly offering unregistered crypto derivative products in the U.S. and violating federal law.
Binance agreed to a $4.3 billion settlement with US authorities that also involved the resignation of founder and CEO “CZ” Zhao earlier this month. The exchange’s new CEO, Richard Teng recently revealed that he is committed to working with regulators to ensure that Binance complies with American laws.
