Binance, a cryptocurrency exchange, announced on Thursday that it will be gradually ending support for its BUSD stablecoin, removing it from spot and margin trading pairs. Users have been asked to convert their BUSD into other assets by February 2021.
As Paxos has halted minting of new BUSD, Binance will gradually cease support for BUSD products, Binance said. Please be assured that BUSD will always be backed 1:1 by USD.
The exchange is delisting BUSD as a loanable asset on September 6th and will cease withdrawals of Binance-peg BUSD tokens via BNB Chain, Avalanche, Polygon, and Tron on September 7th. According to CoinMarketCap, BUSD’s 24-hour trading volume is just under $900 million.
The stablecoin was subject to a regulatory clash in February when Paxos was ordered by the New York Department of Financial Services (NYDFS) to stop issuing it. Binance was subsequently sued by the U.S. regulator, the Commodity and Futures Trading Commission (CFTC), on allegations that it was offering unregistered crypto derivatives products against federal law.
This week, the U.S. Securities and Exchange Commission (SEC) submitted a sealed motion related to Binance, which allows it to file sensitive or confidential information without revealing the contents publicly.