© Reuters.
In a significant development in the cryptocurrency market, Binance announced that it will stop supporting its stablecoin BUSD, which currently has a market capitalization of $16 billion. The move comes following a change in leadership, with CZ stepping down as CEO of Binance.
The exchange has set a timetable for the gradual withdrawal of BUSD, indicating that support will end on December 15, 2023. Binance users have the option to convert their BUSD holdings to FD121 Ltd’s FDUSD stablecoin. without incurring transaction fees. This fee waiver will be in effect until December 31, 2023, when BUSD withdrawals will cease in most regions, except Kazakhstan, Poland, Italy, France and Japan . After this date, all remaining BUSD holdings will be automatically converted to FDUSD.
The discontinuation of BUSD was preceded by regulatory action in February 2023, when the New York Department of Financial Services (NYDFS) requested Paxos to stop issuing BUSD. Paxos partnered with Binance in 2019 to launch BUSD, which became the third stablecoin on the market.
Despite the ongoing changes in the Binance ecosystem and the recent leadership transition, BUSD remains stable, trading at $1. The stablecoin even saw slight increases in its value and trading volume. Binance assured users that BUSD will continue to be callable until February 2024, providing ample time for holders to adjust their positions in light of the upcoming changes.
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