Why Binance Will Stop Supporting BUSD in 2024?

Paxos, the issuer of BUSD, stopped the issuance of BUSD on February 21st, 2023. BUSD will still have 1:1 backing with US dollar-denominated reserves. This is a direct result of avoiding regulatory problems.

In this case, with the NYDFS or the New York Department of Financial Services. So, let’s find out why Binance will stop supporting BUSD in 2024.

Binance Will Stop Supporting BUSD

Binance released a statement, encouraging its users to convert BUSD to other stablecoins. In particular, Binance mentioned First Digital USD (FDUSD). This new stablecoin launched in June 2023. First Digital Group, a Hong Kong-based trust company, backs this stablecoin. Binance listed FDUSD in late July. It has a “zero maker fee promotion for FDUSD trading pairs.” 

As of now, Binance is slowly dwindling its support for this stablecoin. This is in line with Paxos. They will stop redeeming BUSD as of February 2024. To support FDUSD, Binance made the conversion to FDUSD fee-free.

On 30th August, Binance already delisted eight trading pairs with this stablecoin. This comes all as a result of the SEC, who alleged on 13th February 2023, that BUSD is an unregistered security. The SEC issued a well notice to Paxos. This coincided with the NYDFS ordering Paxos to halt BUSD issuance on the same day. Paxos stopped issuing this stablecoin as of 21st February. They still back BUSD 1:1 with US dollar-denominated reserves. Meanwhile, Binance continues to support a variety of other stablecoins.

– For more cryptocurrency news, check out the Altcoin Buzz YouTube channel.

– Manage Your Crypto Portfolio with Regular Updates and Top Insights for only $15/ month. (Hot WEB3 Trends | Undervalued Crypto Gems | Daily Portfolio Strategy)

Sign up here in our Patreon and Youtube.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.

We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.

Copyright Altcoin Buzz Pte Ltd.

The post Why Binance Will Stop Supporting BUSD in 2024? appeared first on Altcoin Buzz.

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Web Times is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – webtimes.uk. The content will be deleted within 24 hours.

Leave a Comment