Binance will drop the BUSD stablecoin in December

 Contents

•  Binance Announces BUSD Support Discontinuation Plan
•  BUSD Regulatory Challenges: SEC and NYDFS Intervene
•  Market Reflections: BUSD's 92% Drop in a Year

Leading cryptocurrency exchange Binance said that, as a result of Paxos stopping the minting of new currencies, it would stop supporting all Binance USD (BUSD) goods as of December 15.

Binance Announces BUSD Support Discontinuation Plan

Users should withdraw or convert their current BUSD on the exchange into other assets by December 15th, according to a notification published by Binance on November 29. Binance will stop accepting BUSD withdrawals on December 31. At that time, certain customers' current balances will be immediately changed to First Digital USD (FDUSD).

This was Binance's most recent attempt to discontinue support for its own stablecoin. Before February 2024, the exchange said that it would progressively discontinue supporting BUSD. The first step would be to stop lending and borrowing funds for the stablecoin in October.

BUSD Regulatory Challenges: SEC and NYDFS Intervene

In a Wells notice sent to Paxos, the stablecoin's issuer, in February, the US Securities and Exchange Commission hypothesized that BUSD was an unregistered security. Paxos was also given an order by the New York Department of Financial Services to stop issuing BUSD.

For withdrawals, use Binance. The US requests that customers convert USD into stablecoins.

U.S. authorities said on November 21 that they had struck a settlement with Binance and its former CEO, Changpeng Zhao, which mandated that they pay a sum of billion. As part of the settlement, Zhao stepped down as CEO, and Richard Teng, the exchange's head of regional markets, took over.

Market Reflections: BUSD's 92% Drop in a Year

By market capitalization, BUSD was among the biggest stablecoins prior to August, peaking at more than billion in November 2022. The stablecoin's market capitalization was around $2.7 billion at the time of publishing, having dropped by more than 92% in a year.

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