Binance Urges Users to Convert BUSD Holdings as Support Ends in 2024

The largest crypto exchange, Binance, may ultimately withdraw support for its stablecoin BUSD in the coming years. According to crypto market participants on X, the exchange has revealed its intention to cease backing BUSD from 2024.

In a recent tweet, Nu Brave, a prominent crypto influencer on X, shared that Binance sent a pop-up notification to its users. According to the tweet’s screenshot, Binance will gradually cease supporting BUSD until 2024.

Furthermore, the pop-up notification stated that the decision concerned BUSD’s embattled issuer, Paxos Trust Company. In particular, it noted that Paxos will end BUSD redemption by February 2024. Given the situation, Binance urged its users to convert their BUSD holdings.

Moreover, Binance recently decided to remove nine BUSD trading pairs on its platform. Coin Edition reported that Binance will cease margin trading BUSD pairs of AMB, DASH, FIDA, HARD, HOT, NULS, PORTO, and REQ next month.

It is worth mentioning that the event leading to the decision affecting BUSD centered around the US regulation. Early this year, the SEC dispatched a Wells Notice to Paxos Trust Co. The formal notice alleged that Binance USD (BUSD) was an unregistered security investment contract.

However, as Coin Edition reported, a spokesperson from Paxos countered the SEC’s perspective. The representative indicated that the firm disagreed that BUSD is a security. The firm also asserted its readiness to vigorously contest the matter legally.

In February, BUSD held the sixth position in market capitalization, exceeding $16 billion. However, the coin’s appeal to investors waned progressively due to regulatory hurdles. BUSD has experienced a decline of more than $13 billion in market share since February.