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Binance Ends BUSD Support! Binance, announced that it will completely end its BUSD support, which it provides to its users, on December 15.
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Binance has decided to terminate its support for the BUSD stablecoin on December 15. The exchange announced that it would “gradually” withdraw this support following Paxos’s decision to stop printing in February, which allowed the coin to be issued.
In a blog post published on Wednesday, Binance, stated that users can use their BUSD’s until February 2024. However, they will stop withdrawal transactions on December 31 and the remaining BUSD balances will automatically be converted to FDUSD issued by FD121 Ltd.
Binance’s stablecoin underwent regulatory scrutiny in February following the New York Department of Financial Services’ (NYDFS) order to Paxos to cease coin issuance.
Shortly after, Binance, was sued by the Commodity Futures Trading Commission (CFTC) on allegations that it offered unregistered crypto derivative products in the US and violated federal laws. The 24-hour trading volume of BUSD is slightly below $400 million according to CoinMarketCap data, while this figure was around $900 million in August.
With these developments, the decision to reduce Binance’s support on its BUSD stablecoin attracts attention in the cryptocurrency markets, while providing its users with the opportunity to use their BUSD’s until February 2024.
Also, the stopping of withdrawal operations on December 31 and the automatic conversion of remaining BUSD balances to FDUSD emerges as a significant change affecting Binance users.
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