Binance, the bitcoin (BTC) and cryptocurrency exchange with the highest trading volume, notified hours ago that it will stop supporting the BUSD stablecoin on December 15. This means that from that day on you will no longer be able to use this currency on its platform.
Therefore, Binance recommends its users who have BUSD to withdraw it or exchange it for other assets before the mentioned date. However, after that, they will continue to allow balance withdrawals in the stablecoin until December 31.
As detailed, this measure is due to the fact that Paxos, the issuer of BUSD that launched this currency in alliance with Binance, will soon stop supporting the stablecoin. This is by order of the New York Department of Financial Services (NYDFS).
Paxos has stated that BUSD will remain compatible and redeemable until at least February 2024. However, it should be noted that several cryptocurrency exchanges may also stop supporting it.
BUSD Loses Market Capitalization
Currently, BUSD is the fifth biggest stablecoin in terms of market capitalization, this is two positions below what it occupied ten months ago, before the regulatory order that prohibited Paxos from continuing to issue the stablecoin.
This has led Binance to lose market share compared to other exchanges throughout the year, despite the upward trend of cryptocurrencies. Likewise, this was driven by other issues such as complaints it received from regulators.
Last week, Binance founder CZ admitted guilt for violating anti-money laundering measures in a complaint filed by a US regulator. As a result, he resigned from his position as CEO and will pay a fine of USD 4.3 billion.
Meanwhile, the price of bitcoin remains at its highest in more than a year, near $38,800 , reflecting that the market is not being affected by the negative news from BUSD and Binance.
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