Binance to Phase Out Support for BUSD, Encourages Conversion to FDUSD
Summary:
Binance, the popular crypto exchange, plans to wind down support for its stablecoin, Binance USD (BUSD), by February 2024. Users are encouraged to convert their BUSD holdings into a newly listed stablecoin, First Digital USD (FDUSD). Binance has made BUSD to FDUSD trades and conversions fee-free and delisted eight BUSD trading pairs. This decision follows allegations by the SEC that BUSD was an unregistered security.
Binance, the popular crypto exchange, has advised its users to start converting their holdings of Binance USD (BUSD) stablecoin into a newly listed stablecoin as part of its plan to phase out support for BUSD. In an official statement released on August 31, Binance confirmed that it will gradually stop supporting BUSD by February 2024, aligning with Paxos' decision to end BUSD redemption at that time. This statement comes after users shared screenshots of a pop-up on their mobile app regarding the planned support halt. Binance is encouraging users to trade or convert their BUSD balances for First Digital USD (FDUSD), a stablecoin launched by Hong Kong-based trust company, First Digital Group. Binance has also made BUSD to FDUSD trades and conversions fee-free and delisted eight BUSD trading pairs on August 30. Previously, Binance incentivized users to use BUSD by offering zero-fee trading pairs for FDUSD with Bitcoin (BTC) and Ether (ETH). Binance's decision to halt BUSD support follows the allegations made by the United States Securities and Exchange Commission on February 13, stating that BUSD was an unregistered security. The New York Department of Financial Services also ordered Paxos, the creator of BUSD, to cease the issuance of BUSD on the same day.
Published At
8/31/2023 8:04:59 AM
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