Binance to End Support for BUSD Stablecoin in 2024
The world’s largest crypto exchange, Binance, has informed users that it will no longer support its own stablecoin, BUSD. 2024 will be the last year for the stablecoin. The reason for this could be pressure from the authorities. Once again, the US Securities and Exchange Commission (SEC) caused a stir. On February 13 of this year, the SEC filed a lawsuit against Paxos Trust Company, the issuer of BUSD. Charge: The company is guilty of offering unregistered securities for sale.
Binance USD is one of the largest stablecoins by market cap. Being a stablecoin, it is backed by fiat currency and is designed to replicate the value of the US dollar. Stablecoins are an important and common medium of exchange on many crypto exchanges and offer many benefits to traders. BUSD is not the only stablecoin on Binance, but it should be a major blow to the exchange.
Now the task of Paxos as an issuer is to buy up the remaining BUSD assets and pay them with other stablecoins. Starting February 21 next year, Paxos will no longer issue new Binance stablecoins. Binance CEO Changpeng Zhao assures BUSD holders that their balance will be paid in full.
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