Binance has announced the discontinuation of its support for the BUSD stablecoin effective December 15.
This decision follows Binance’s previous statement in August, outlining a gradual phase-out plan after Paxos, the coin’s issuing entity, received a directive to halt coin minting in February.
According to a recent Wednesday blog post by Binance, users will have the ability to redeem their BUSD until February 2024. However, BUSD withdrawals on the platform will cease on December 31. Any remaining BUSD balances after this date will automatically convert to FDUSD, a stablecoin issued by FD121 Ltd.
In accordance with past communications, #Binance will cease support for BUSD products starting on December 15, 2023.
Users may trade or convert their BUSD balances for $FDUSD at zero trading fees.
Full details here 👇https://t.co/usRi09uOhi
— Binance (@binance) November 29, 2023
— Binance (@binance) November 29, 2023
In February, the United States Securities and Exchange Commission indicated that BUSD was an unregistered security in a Wells notice sent to Paxos, the entity responsible for the stablecoin. Additionally, the New York Department of Financial Services directed Paxos to halt the issuance of BUSD.
Announced on November 21, U.S. authorities finalized a settlement with Binance and former CEO Changpeng Zhao, mandating a payment of $4.3 billion. As part of this agreement, Zhao stepped down as CEO, allowing Richard Teng, the exchange’s head of regional markets, to assume the role.
The newly appointed CEO of the exchange emphasized in a recent blog post his commitment to collaborating with regulators and ensuring the exchange’s compliance with American laws.
Prior to August, BUSD held a significant position among stablecoins by market capitalization, surging to over $23.3 billion in November 2022.
