BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
FOLLOW
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result

Binance Gradually Phases Out BUSD, Promotes FDUSD As An Alternative

BlockNews Team by BlockNews Team
September 4, 2023
in Business, Crypto, Finance
Binance BUSD
Share on TwitterShare on Reddit
  • Binance announced it will phase out support for its stablecoin, BUSD, with a complete transition by February 2024.
  • The decision follows regulatory pressures, including a cease order from the New York Department of Financial Services to Paxos, the issuer of BUSD.
  • Binance is promoting a new stablecoin, First Digital USD (FDUSD), offering a 1:1 exchange rate and commission-free trading to encourage users to switch.

Cryptocurrency exchange Binance, one of the largest players in the field, recently made a startling announcement that has far-reaching implications. It declared its intention to “gradually” discontinue support for Binance USD (BUSD), a stablecoin that has been crucial in various trading and investment operations. This revelation comes at a time when stablecoins are under close scrutiny from regulators, adding another layer of complexity to the crypto landscape.

According to the exchange, users must convert their holdings in BUSD into other digital assets by February 2024. Starting from September 7, 2023, cross-margin BUSD borrowings will be suspended. Moreover, from October 19, 2023, the platform will no longer accept new BUSD collateral. Binance has also ceased BUSD withdrawals across multiple blockchain networks like BNB Chain, Avalanche, Polygon, and Tron, effective September 7, 2023.

While the announcement of the phase-out wasn’t entirely unexpected, the pace at which the timelines have been pushed forward seems to have caught many by surprise. In the past, Binance CEO Changpeng Zhao had alluded to a “slow wind down” of BUSD, although the exact timing was unclear. Now, that lack of clarity has been replaced by decisive timelines, impacting those holding or trading BUSD.

Regulatory Pressures and Legal Tangles

The underlying reason for the BUSD phase-out can be traced back to regulatory factors and the involvement of the stablecoin issuer, Paxos. Paxos was ordered by the New York Department of Financial Services (NYDFS) to stop minting BUSD earlier this year. This regulatory action was followed by the Commodity and Futures Trading Commission (CFTC) suing Binance on allegations of offering unregistered crypto derivatives products.

Moreover, fresh legal issues have surfaced with the U.S. Securities and Exchange Commission (SEC) submitting a sealed motion related to Binance. This indicates that Binance’s legal troubles are far from over and could potentially be a contributing factor in the decision to phase out BUSD.

Transition to Other Stablecoins: FDUSD Spotlighted

As Binance winds down support for BUSD, it is simultaneously promoting another stablecoin, First Digital USD (FDUSD). This coin was launched in June by the First Digital Group based in Hong Kong and made its debut on Binance in late July. Binance is offering incentives for users to transition their BUSD holdings to FDUSD. A 1:1 BUSD/FDUSD exchange rate and commission-free trading between these stablecoins are some of the incentives being offered to accelerate this shift.

Paxos, too, has confirmed that all existing BUSD tokens will remain fully backed and redeemable until at least February 2024. Users also have the option to convert their BUSD to the Pax Dollar (USDP), another stablecoin from Paxos, reinforcing the fact that they have multiple options to choose from. The cessation of BUSD services marks a significant shift in the crypto arena, underpinned by regulatory complexities and the ongoing quest for stability within the digital asset ecosystem.

Tags: BinanceBUSDFDUSD
TweetShareShare

DON'T MISS THESE! HOT OFF THE PRESS

bitcoin(s)
Crypto

US Lawmakers Call On SEC Chair To Approve Spot Bitcoin ETFs ‘Immediately’

September 30, 2023
Uniswap-logo
Business

Uniswap Seeks Funding Approval to Bolster Development and Research Initiatives

September 30, 2023
Ripple Logo on Phone
Business

Ripple Retracts Fortress Trust Acquisition, Keeps Future Collaborations Open

September 30, 2023
Eth logo
Crypto

Ethereum Futures ETFs Could Start Trading Next Week — Bloomberg Analyst

September 30, 2023
Paysafe logo on Billboard
Business

Binance Loses Key European Banking Partner Paysafe, Urges Shift to USDT

September 30, 2023
Around the Block
Crypto

Around The Block: Sept 29 Week in News

September 30, 2023
Load More
Next Post
RESIDENCY by Adidas

Adidas Introduces NFT Artistry Residency with Plans for Physical Collaborations

polyhedra network

Polyhedra Network to Introduce a zkBridge on Polygon for Increased Interoperability

Klaytn Network

Klaytn Partners with Injective

Related News

bitcoin

Crypto Cloudburst: Bitcoin Plunges Sub-$25K Amid Regulatory and Fiscal Turmoil

June 17, 2023
Red Bull-Formula-one

Red Bull Partnership with Azuki Marks NFT History

November 24, 2022
Legend of The Mara

Yuga Labs Gears Up for the Launch of Beta Legend of The Mara

September 4, 2023

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Featured
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
Discord Twitter Instagram TikTok
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Featured
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • US Lawmakers Call On SEC Chair To Approve Spot Bitcoin ETFs ‘Immediately’ September 30, 2023
  • Uniswap Seeks Funding Approval to Bolster Development and Research Initiatives September 30, 2023
  • Ripple Retracts Fortress Trust Acquisition, Keeps Future Collaborations Open September 30, 2023

© 2022-2023 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

© 2022-2023 BlockNews.com - Crypto and NFT news website by JRNY Club.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?