Cryptocurrency giant Binance announced it will gradually end support for its BUSD stablecoin by early next year. The move comes as BUSD faces growing regulatory scrutiny in the US.
Binance told users to convert their BUSD holdings into other cryptocurrencies before February 2023. More immediately, BUSD will be delisted from trading pairs on September 6th and withdrawals of binance-introduces-crypto-transfer-for-latin-america">Binance-pegged BUSD will cease across multiple blockchains the next day.
The wind-down of BUSD was anticipated after issuer Paxos was ordered to stop minting new BUSD tokens in February by New York regulators. Despite the phase out, Binance stated that BUSD will remain fully backed 1-to-1 with US dollars.
With $900 million in daily trading volume, BUSD is one of the most widely used stablecoins. But its regulatory troubles continue to mount. The SEC recently filed a sealed motion against Binance related to BUSD, suggesting potential confidential information in a new legal clash.
Earlier this year, the CFTC sued Binance for allegedly offering unregistered derivatives products against US law. As regulators intensify their focus on stablecoins, Binance’s decision to remove BUSD offerings signals an effort to proactively avoid further scrutiny.
#BUSD #Tokens #Binance
