Binance, the crypto behemoth, has dropped a bombshell on the crypto community! They’ve decided to “gradually” end supporting their BUSD stablecoin. Why, you ask? It seems Paxos has put a full stop to minting new BUSD.
So, if you’re one of those holding onto BUSD in your Binance wallet, it’s time to move. Binance is nudging its users to swap their BUSD for other assets. And they’ve set a deadline, too – by February next year. But don’t sweat it! Binance assures its users that every BUSD will always be backed 1:1 by USD. Phew, right?
But here’s where it gets a bit tricky. Binance is set to delist BUSD as a loanable asset on September 6. That’s right around the corner! And if that wasn’t enough, they’re also halting withdrawals of Binance-peg BUSD tokens via several chains, including BNB Chain, Avalanche, Polygon, and Tron, starting September 7.
Now, let’s talk numbers. Currently, the 24-hour trading volume of BUSD is hovering just under a whopping $900 million, according to CoinMarketCap. That’s a lot of coins!
But why this sudden move? Well, it’s not all that sudden if you’ve been keeping tabs. The stablecoin was in hot water in February when the New York Department of Financial Services (NYDFS) gave Paxos a stern order to stop issuing it. And as if that wasn’t enough drama, Binance then faced the wrath of the U.S. regulator, the Commodity and Futures Trading Commission (CFTC). The charge? Allegedly offering unregistered crypto derivatives products against federal law. Yikes!
And just when we thought the storm had passed, there were whispers of another potential legal challenge for Binance. Word on the street is that the U.S. Securities and Exchange Commission (SEC) has submitted a sealed motion related to the exchange.
So, what’s next for Binance and its users? Only time will tell. But one thing’s sure: the crypto rollercoaster ride is far from over!
