Binance changes: support for BUSD will end in December
Binance, the leading cryptocurrency exchange, has announced that as of December 15 2023, it will cease support for all Binance USD (BUSD) products due to Paxos discontinuing the mint of new coins.
In a November 29, 2023 notice, Binance stated that users should withdraw or convert BUSD on the exchange before December 15. Starting December 31, Binance'll disable BUSD withdrawals. At that point, existing balances'll be automatically converted to First Digital USD (FDUSD) for some users. Users will be able to exchange or convert their BUSD balances to $FDUSD without trading fees.
The exchange had announced that it would phase out support for BUSD before February 2024, beginning by ceasing borrowing and lending services for the stablecoin in October. Anticipating the timing a bit, as it's renewing itself in several respects at this time, and we honestly still don't know if for better or worse...
In February, the U.S. Securities and Exchange Commission affirmed through a Wells notice issued to Paxos, the issuer of the stablecoin, that BUSD was an unregistered security. The New York Department of Financial Services also ordered Paxos to stop issuing BUSD. On November 21, U.S. authorities announced that they had reached a settlement with Binance and former CEO Changpeng Zhao, requiring them to pay $4.3 billion. As part of the settlement, Zhao resigned as CEO and his place was taken by Richard Teng, head of the exchange's regional markets. Prior to August, BUSD was one of the largest stablecoins by market capitalization, having peaked at more than $23.3 billion in November 2022. At the time of publication, the stablecoin's market capitalization was about $1.7 billion, a decline of more than 92 percent in 12 months.
Will we move toward a new era for tokens?