Main cryptocurrency trade Binance introduced it is going to stop assist for all Binance USD (BUSD) merchandise beginning on Dec. 15 following Paxos halting the minting of recent cash.
In a Nov. 29 discover, Binance mentioned customers ought to withdraw or convert their present BUSD on the trade into different belongings earlier than Dec. 15. Beginning Dec. 31, Binance will disable withdrawals for BUSD. At that time, present balances will robotically be transformed into First Digital USD (FDUSD) for sure customers.
In accordance with previous communications, #Binance will stop assist for BUSD merchandise beginning on December 15, 2023.
Customers could commerce or convert their BUSD balances for $FDUSD at zero buying and selling charges.
Full particulars right here https://t.co/usRi09uOhi
— Binance (@binance) November 29, 2023
The transfer was the newest by Binance in winding down providers for its native stablecoin. The trade introduced it deliberate to progressively cease assist for BUSD earlier than February 2024, beginning with ceasing borrowing and lending providers for the stablecoin in October.
In February, the USA Securities and Trade Fee recommended BUSD was an unregistered safety in a Wells discover issued to Paxos — the issuer behind the stablecoin. The New York Division of Monetary Providers additionally ordered Paxos to halt the issuance of BUSD.
Associated: Binance.US asks customers to transform USD into stablecoins for withdrawals
On Nov. 21, U.S. authorities introduced that they had reached a settlement with Binance and former CEO Changpeng Zhao, requiring them to pay $4.3 billion. Zhao resigned as CEO as a part of the settlement, with the trade’s head of regional markets, Richard Teng, moving into his sneakers.
Earlier than August, BUSD was one of many largest stablecoins by market capitalization, reaching a peak of greater than $23.3 billion in November 2022. On the time of publication, the stablecoin’s market cap was roughly $1.7 billion, falling by greater than 92% in 12 months.
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