Binance to Halt Support for BUSD Stablecoin on Dec. 15

• Binance Set to Discontinue Support for BUSD Stablecoin
• BUSD Redemption and Withdrawal
• BUSD Trade Volume
• Regulatory Concerns
• New CEO and Regulatory Compliance

Binance Set to Discontinue Support for BUSD Stablecoin

Binance, the renowned cryptocurrency exchange, has announced that it will cease supporting its BUSD stablecoin from December 15. This development follows a previous announcement made in August where the exchange declared a gradual end to the support for the stablecoin. The issuer of the BUSD, Paxos, was instructed to stop producing the coin back in February.

BUSD Redemption and Withdrawal

Despite the decision to end support, users will be able to redeem their BUSD until February 2024, as stated by Binance in a recent blog post. Nonetheless, the exchange has also indicated that it will suspend withdrawals as of December 31. Any remaining BUSD balances will automatically be converted to FDUSD, a stablecoin issued by FD121 Ltd.

BUSD Trade Volume

According to CoinMarketCap data, the current 24-hour trading volume of BUSD is just shy of $400 million. This represents a significant decrease, considering that the volume was approximately $900 million in August.

Regulatory Concerns

Binance's stablecoin faced its share of regulatory scrutiny in February, when the New York Department of Financial Services (NYDFS) ordered Paxos to halt issuance. Soon after, Binance found itself facing a lawsuit by the Commodity Futures Trading Commission (CFTC) for allegedly offering unregistered crypto derivative products in the U.S., in violation of federal law.

New CEO and Regulatory Compliance

Richard Teng, the newly appointed CEO of Binance who succeeded the founder, Changpeng CZ Zhao earlier this month, has shown his commitment towards collaborating with regulators. As part of a $4.3 billion settlement with the U.S., Teng is fully committed to ensuring that the exchange adheres to American laws.

Edited by Jonathan Stoker