Binance recently announced that it would cease all technical support for its popular stablecoin BUSD starting December 15. A token backed by the US dollar which had nevertheless been an integral part of its strategy since 2019.
The end of BUSD support by Binance
In a brief press release published on November 29, Binance informed its users that it would cease all support for BUSD within a few weeks. A decision which comes at the worst time for the crypto giant, entangled in serious legal disputes in the United States.
By the way, Binance encourages users to switch to its home stablecoin, FDUSD. This conversion will be done without any trading fees. Thus, BUSD support will be gradually removed from the various services offered by Binance: spot trading, futures contracts, cryptocurrency loans, bank card, etc.
Additionally, customers’ remaining BUSD balances will be automatically liquidated and converted to FDUSD after December 31, 2023, with a parity of 1:1. Only residents of Japan, France, Italy, Poland and Kazakhstan will initially escape it.
Binance had been preparing for this outcome for several months already. Indeed, since the start of the year, Paxos has been in the crosshairs of American regulatory authorities. These forced it to stop issuing the stablecoin. Currently, users have until December 15, 2023 to convert their BUSD into other cryptocurrencies.
However, this announcement comes at the worst possible time. Indeed, Binance is currently going through a delicate period with the American justice system after its recent criminal agreement.
Recall that the exchange has agreed to pay a record fine of $4.5 billion and is under close surveillance by the Department of Justice for the next 5 years. In addition, its now ex-director, Changpeng Zhao, finds himself obliged to answer for the shortcomings of his platform in terms of monitoring illicit activities. A conviction could result in an effective prison sentence.
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