Crypto exchange giant Binance will stop support for BUSD by 2024 after Paxos halted minting the stablecoin following a regulatory clampdown.
The firm, meanwhile, has asked users to convert their BUSD to FDUSD, a stablecoin recently listed on the Binance platform.
- Binance, in an announcement on Aug. 31, revealed that it will delist BUSD spot and margin trading pairs. The company earlier said that it would remove nine cross-margin and isolated margin BUSD trading pairs, including HARD/BUSD, AMB/BUSD, and IOST/BUSD.
- The announcement also encouraged users to convert their BUSD to FDUSD at 1:1 or trade BUSD assets for FDUSD at zero fees, as the company is looking to cease BUSD support by February 2024. Customers can also convert their BUSD balances to other stablecoins supported on Binance.
- Meanwhile, BUSD (ERC-20) token withdrawals and deposits on the Ethereum network will be supported until further notice.
- According to Binance, the latest development comes after blockchain infrastructure platform Paxos stopped minting BUSD.
- As previously reported by CryptoPotato, the New York Department of Financial Services (NYDFS) directed Paxos to cease minting new BUSD tokens, causing the firm to stop new issuance from Feb. 21, 2023.
- First Digital USD, or FDUSD, is issued by First Digital Trust, a Hong Kong-based custodian. The stablecoin was listed on Binance in July with “a zero maker fee promotion for FDUSD trading pairs.”