Binance to Delist BUSD Stablecoin by December 2023

Binance, the world’s leading cryptocurrency exchange platform has announced its decision to discontinue support for its native stablecoin, the BUSD (Binance USD) following an earlier directive for the stablecoin issuer Paxos to cease minting the token earlier in the year. 

Binance Sets to Convert BUSD balance to FDUSD 

As per the official announcement, the exchange will completely wind down support for its BUSD spots and margin trading pairs by December 15. Afterward, users’ BUSD holdings will be transitioned into an alternative stablecoin named FDUSD.

Recall that the cryptocurrency exchange had previously communicated its intention in August to phase out support for BUSD by February 2024. Despite this transition timeline, Binance has emphasized that users can still seamlessly convert their holdings to FDUSD without incurring any fees.

However, the move to cease BUSD support aligns with the broader regulatory landscape and the circumstances surrounding the stablecoin issuer. The earlier directive for Paxos to halt minting BUSD after it faced legal action likely influenced Binance’s decision to expedite the discontinuation of support. By setting a phased timeline, Binance aimed to provide its users with ample time to transition to the recommended alternative.

Paxos Disagrees with the SEC on BUSD Being a Security

In response to the United States Securities and Exchange Commission (SEC) allegation, the blockchain infrastructure platform said that it absolutely disagrees with the regulators as BUSD stablecoin is not to be referred to as a security.

According to Paxos, its Binance-backed token doesn’t qualify as a security under federal securities laws. Additionally, the stablecoin is completely pegged 1:1 to the US dollar reserve. Therefore, the firm strongly disagrees with the regulator and is ready to defend its position in a US Court if necessary.

BUSD Ranked as the Fourth-Largest Stablecoin by Market Cap

According to statistics carried out in June, it was discovered that the dollar-pegged Binance USD stablecoin is now ranked fourth in terms of market capitalization among other stablecoins.

Meanwhile, BUSD is a stablecoin created by Binance that is 1:1 USD-backed and is approved and governed by the New York State Department of Financial Services. It is a digital asset whose value is tied to a reserve of US dollars in order to maintain a constant value. The BUSD may be used for a number of things, such as boosting global commerce and operating as a means of payment for products and services.