NewsletterBreaking: Binance to Halt BUSD Borrowing and Staking Services by October 25th
Binance is phasing out its Binance USD (BUSD) lending services by October 25. This move is the latest in a series of steps toward the cessation of all BUSD-related offerings by 2024.
Paxos Ends Ties Amid Regulatory Pressure
Significantly, this decision by the exchange aligns with the earlier stance taken by the New York fintech firm Paxos. They intended to terminate their association with the exchange due to legal issues between it and the U.S. Securities and Exchange Commission (SEC).
Moreover, Paxos had highlighted its plan to stop BUSD redemptions to U.S. cash and Treasuries by February 2024. Additionally, it placed a temporary pause on the minting of new BUSD.
Before this announcement, BUSD boasted an impressive peak market capitalization of $23 billion in November 2022. However, this value has since plunged to $2.23 billion.
Binance Directs Users Towards Alternative Stablecoin Options
Last month, in a strategic shift, Binance suspended withdrawals of BUSD through multiple blockchain networks. However, they maintained the service on the Ethereum network. The exchange has urged users to transition their BUSD assets to fiat or other crypto options within the upcoming year.
Binance has prompted its clientele to transfer their BUSD assets to other stablecoins in another significant move. The emphasis has been on the newly launched First Digital USD (FDUSD) by First Digital Group. This Hong Kong-based trust company debuted its stablecoin on Binance in late July.
Binance’s actions come after the U.S. SEC’s allegations that BUSD functions as an unregistered security. Consequently, the New York Department of Financial Services directed Paxos to cease the issuance of BUSD.
As Binance maneuvers through regulatory hurdles, users must stay updated and make informed decisions regarding their BUSD assets.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Stablecoin Adoption Deepens as Klarna Turns to Coinbase for Institutional Liquidity
- Ripple, Circle Could Gain Fed Access as Board Seeks Feedback on ‘Skinny Master Account’
- Fed’s Williams Says No Urgency to Cut Rates Further as Crypto Traders Bet Against January Cut
- Trump to Interview BlackRock’s Rick Rieder as Fed Chair Shortlist Narrows to Four
- Breaking: VanEck Discloses Fees and Staking Details for its Avalanche ETF
- SUI Price Forecast After Bitwise Filed for SUI ETF With U.S. SEC – Is $3 Next?
- Bitcoin Price Alarming Pattern Points to a Dip to $80k as $2.7b Options Expires Today
- Dogecoin Price Prediction Points to $0.20 Rebound as Coinbase Launches Regulated DOGE Futures
- Pi Coin Price Prediction as Expert Warns Bitcoin May Hit $70k After BoJ Rate Hike
- Cardano Price Outlook: Will the NIGHT Token Demand Surge Trigger a Rebound?
- Will Bitcoin Price Crash to $74K as Japan Eyes Rate Hike on December 19?
