Why Binance Will Delist BUSD
Binance announced on Nov. 29 that it will end support for its associated Binance USD (BUSD) stablecoin starting in mid-December.
Binance indicated that all spot trading pairs involving BUSD will be delisted between Dec. 11 and Dec. 15. It also said that spot trading orders and Spot Trading Bot services will be closed or terminated on the relevant date. Binance said that futures delistings will take place according to a different schedule.
The company said that users should withdraw their BUSD holdings or convert BUSD into other assets before Dec. 15. It noted that users can convert BUSD to another stablecoin, First Digital USD (FDUSD), at a 1:1 rate with zero fees.
The company said it would end BUSD withdrawals on Dec. 31 and that BUSD balances would be automatically converted to FDUSD. Users in some countries will not have their BUSD converted at that time, Binance said.
Binance added that collateral assets of Binance-Peg BUSD will also be converted to FDUSD at a yet-to-be-determined point around December 2023.
Paxos stopped minting BUSD in February
Binance’s issuing partner, Paxos, announced that it would stop minting BUSD in February amidst action from the New York Department of Financial Services (NYDFS). Binance noted today that Paxos will continue to offer redemption and support for BUSD through at least February 2024 despite halting issuance.
Binance has been gradually discontinuing BUSD in response to the developments involving Paxos. In March, Binance announced it would replace BUSD in its SAFU Fund with other stablecoins while supporting BUSD more broadly.
Later, in August, Binance said it would end BUSD support by February 2024. It did not provide any specific date by which it would end support at the time. Also, in October, Binance announced the end of BUSD borrowing and staking.
BUSD currently has a market capitalization of $1.7 billion. By that measure, it is the fifth largest stablecoin and 39th largest cryptocurrency overall.
As for why BUSD is being delisted
by Binance in general, there is no official statement from Binance regarding this matter. However, according to a news article by CryptoGlobe , Binance plans to terminate its support for its native BUSD stablecoin by 2024 and urges users to convert the token to other crypto assets. This development was revealed via a pop-up notification on the exchange’s mobile app. Binance will stop supporting BUSD in 2024.
It is worth noting that BUSD is a stablecoin pegged to the US dollar and is issued by Paxos Trust Company . It is used as a medium of exchange in the cryptocurrency market and is designed to maintain a stable value relative to the US dollar.
Binance's decision to delist BUSD trading pairs may have been influenced by several factors such as regulatory pressure or low trading volumes. However, without an official statement from Binance regarding this matter, it is difficult to determine the exact reason behind this decision.
I hope this article helps you understand why Binance is delisting BUSD. Let me know if you have any other questions!
SOURCES:
(1) Binance to 'Gradually' End Support for BUSD Products - CoinDesk. https://www.coindesk.com/business/2023/08/31/binance-to-gradually-end-support-for-busd-products/.
(2) Binance To Delist Eight BUSD Trading Pairs Soon, End Full ... - NewsBTC. https://www.newsbtc.com/binance/binance-to-delist-eight-busd-trading-pairs-soon-end-full-busd-support-by-2024/.
(3) Binance to Delist 9 BUSD Margin Trading Pairs in September, Here’s Why. https://coinedition.com/binance-to-delist-9-busd-margin-trading-pairs-in-september-heres-why/.
(4) Binance To Delist 8 BUSD Trading Pairs: Here’s Everything Traders .... https://coinpedia.org/news/binance-to-delist-8-busd-trading-pairs-heres-everything-traders-should-know/.
