A popular crypto exchange called Binance has said it won’t support its BUSD stablecoin anymore. They’re doing this because they’re facing more rules from regulators, especially in the US, after some issues involving FTX and Alameda Research last year.
Because of this change, Binance is telling people who have BUSD to change it into other stablecoins they support, like Tether (USDT), Circle (USDC), FDUSD, and TUSD. They want people to know that they can change their BUSD into these other coins at the same value as the US dollar, which means 1 BUSD can be turned into 1 dollar whenever someone wants.`
Binance has made a plan for these changes. On September 7, they will stop letting people borrow BUSD on Cross Margin. And from October 29, folks who use Cross Margin and Portfolio Margin won’t be able to use BUSD as new money they put in the Cross Margin Wallet. But people can still use BUSD they have as collateral for other tokens.
As Paxos has halted minting of new BUSD, #Binance will now gradually remove support for the stablecoin on our platform.
BUSD will always remain backed 1:1 by USD, and we continue to support a wide range of other stablecoins.
Find more details below.
— Binance (@binance) August 31, 2023
Binance is having trouble with the rules. The United States Securities and Exchange Commission (SEC) says that Binance’s own cryptocurrency, Binance Coin (BNB), could be seen as a security. This caused problems and some say Binance did things they weren’t allowed to do in the US. They also got blamed for being part of money laundering and for listing digital money that’s not registered as it should be.
Earlier this year, Paxos Trust got attention for stopping the making of new BUSD stablecoins. This happened because the New York Department of Financial Services (NYDFS) told them to stop. But even with these problems, Binance is still trying to be strong in the US. They’re saying that digital money is really important for the world’s money system.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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