Binance to Cease Support for BUSD Stablecoin by December

Binance has announced the discontinuation of its support for the BUSD stablecoin effective December 15. 

This decision follows Binance’s earlier statement in August, outlining a gradual phase-out plan after Paxos, the coin’s issuing entity, received a directive to cease coin minting in February.

According to Binance’s recent Wednesday blog post, users will retain the ability to redeem their BUSD until February 2024. However, the platform will cease BUSD withdrawals on December 31. Any remaining BUSD balances after this date will undergo an automatic conversion to FDUSD, a stablecoin issued by FD121 Ltd.

In accordance with past communications, #Binance will cease support for BUSD products starting on December 15, 2023.

Users may trade or convert their BUSD balances for $FDUSD at zero trading fees.

Full details here 👇https://t.co/usRi09uOhi

— Binance (@binance) November 29, 2023

During February, the United States Securities and Exchange Commission indicated that BUSD was an unregistered security in a Wells notice sent to Paxos, the entity responsible for the stablecoin. Additionally, the New York Department of Financial Services directed Paxos to cease the issuance of BUSD.

Announced on November 21, U.S. authorities finalised a settlement with Binance and former CEO Changpeng Zhao, mandating a payment of $4.3 billion. As part of this agreement, Zhao stepped down as CEO, making way for Richard Teng, the exchange’s head of regional markets, to assume the role.

The newly appointed CEO of the exchange emphasised in a recent blog post his dedication to collaborating with regulators and ensuring the exchange’s adherence to American laws.

Prior to August, BUSD held a significant position among stablecoins by market capitalization, surging to over $23.3 billion in November 2022.