Binance, the world’s leading crypto exchange, recently made a major announcement regarding BUSD, its flagship stablecoin. The platform has decided to remove 25 BUSD trading pairs. But why such a decision?
Binance to remove 25 BUSD trading pairs
In a context where Binance is losing its supremacy in the Bitcoin futures market to the CME Group, the exchange is making a surprising announcement.
In a press release, Binance announcement the removal of 25 BUSD trading pairs associated with various altcoins. The platform justified this decision by reasons such as low liquidity and insufficient trading volume for certain pairs.
“We regularly evaluate all trading pairs to ensure the safety of our users and ensure a quality market. Factors such as low liquidity or insufficient trading volume may motivate removal.”
Thus, pairs such as CAKE/BUSD, COMP/BUSD and EOS/BUSD will be the first to disappear on November 3 at 06:00 UTC.
This first round will be followed by other deletions, including MAGIC/BUSD, MASK/BUSD and MKR/BUSD, scheduled for 08:00 UTC the same day. This initiative aligns with the regular trading pair update strategy. Remember that last August, the platform had already eliminated 60 trading pairs.
The end of BUSD in sight!
The future of BUSD on Binance seems uncertain. Earlier this year, the U.S. Securities and Exchange Commission (SEC) put pressure on PAXOS, the Exchange’s partner for stablecoin-related services.
Faced with the intervention of the SEC, which defined BUSD as an unregistered security, Binance ended its collaboration with PAXOS, responsible for the issuance of BUSD. Therefore, Binance stated that it would stop supporting BUSD by 2024.
Although the 1:1 rate between BUSD and the US dollar is still in effect, the issuance of new BUSD has been suspended. Faced with this situation, Binance could explore other stablecoin options in order to maintain the trust of its users.
In short, the removal of the 25 BUSD trading pairs by Binance demonstrates the regulatory challenges and the ambition to guarantee a quality market. As support for BUSD comes to an end, Binance, with its expertise, already seems to be preparing for the future. It remains to be seen which stablecoin it will turn to.
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