Binance Stops BUSD Stablecoin Support In 2024

Binance USD or BUSD stablecoin. (Photo; Doc. Bitcourier)

JAKARTA - Binance, one of the largest crypto exchanges in the world, recently announced its plans to discontinue support for the BUSD stablecoin by 2024. The cessation of this service will take place in stages until the Paxos completes the acquisition of the BUSD which is scheduled for February 2024.

The decision appears to be a response to pressure from financial regulators, which have highlighted BUSD despite still being in the top five in terms of market cap, with a total of 3,102,462,479 US dollars.

On February 13 this year, the United States Securities and Exchange Commission (SEC) announced its plans to sue Paxos Trust Company, which is the publisher of BUSD. The lawsuit is based on allegations that BUSD is an unregistered securities, sparking attention and uncertainty in the crypto community.

In response to this lawsuit, the Paxos Trust Company, which is based in the United States, announced that it will stop issuance of a new BUSD starting February 21. Binance CEO Changpeng Zhao (CZ), guarantees BUSD holders that they need not worry, as Paxos will manage the conversion and store fully BUSD reserves in their banks.

Binance's decision to stop BUSD support in 2024 raises questions about the future of this stablecoin and its impact on the crypto market. BUSD has become one of several major stablecoins used in crypto trading, and termination of support by large exchanges like Binance could affect its stability and liquidity.

In addition, this move also underscores the importance of regulation and compliance within the growing crypto ecosystem, with financial watchdogs such as the SEC continuing to monitor and act against crypto projects deemed to violate the rules.

On the other hand, BUSD holders and other crypto market players will follow further developments regarding the acquisition of BUSD by Paxos and its implications for the stability of the crypto market. In this context, the security of customer funds and compliance with regulations will be a crucial aspect.