Paxos halted BUSD mining due to regulatory issues. Now, Binance has taken the decision to gradually end its support for the products of BUSD. To cope with the upcoming events, Binance advises its users to convert their BUSD holdings into other stablecoins. Binance made this decision after Paxos’ decision and officially announced it.

Binance to End Support for BUSD in February 2024

The world’s largest and leading cryptocurrency exchange, Binance, is serving across the world. Binance has supported a wide range of crypto assets and eased the customers by giving concerning leads to the clients.  Paxos, best known for offering regulated blockchain infrastructure has announced to halt of BUSD mining upon which Binance responded.

Binance advised its users to convert all of their BUSD holdings into other stablecoins. Moreover, the exchange is planning to end its support for BUSD and to remove it from margin and spot trading pairs.  In the announcement, Binance gives a time limit and advises to carry out the conversion before February 2024. Binance announced and advised the customers after Paxos announced to halt Binance USD mining. However, Binance assured that BUSD is going to be backed by USD by 1:1.

                                                           Binance official announcement

Binance’s Futuristic Plan

In the first week on the 6th of September 2023, Binance will delist BUSD as the loanable asset. Moreover, on the 7th of September, Binance will cease the Binance-peg BUSD withdrawal via Tron, Polygon, Avalanche and BNB Chain. CoinMarketCap’s data shows that the overall trading volume of Binance USD is below $900 million.

New York Department of Financial Services (NYDFC) ordered Paxos to stop issuing the stablecoins in February. And Biannce was also charged by the Commodity and Futures Trading Commission (CFTC) for offering unregistered crypto assets against federal law. To cope with this situation, a sign for the case was brought into light when the SEC (Securities and Exchange Commission) delivered a sealed motion to Binance.  It allows Binance to file confidential or sensitive information but not to reveal the contents of it publically. For now, Binance has advised the users and shared the required information.