Binance, one of the world’s largest cryptocurrency exchanges, has announced that it will end support for its Binance USD (BUSD) stablecoin on December 15, 2023. This move comes after regulatory pressures faced by Paxos, the issuer of BUSD, which was ordered to stop minting the coin by the New York Department of Financial Services (NYDFS) in February 2023. The decision to end support for BUSD was made in August 2023, with Binance stating that it would “gradually” do so.
Users will still be able to redeem their BUSD until February 2024, after which the stablecoin will no longer be supported. Binance has stated that withdrawals of BUSD will be halted on December 31, 2023, and any remaining balances will be automatically converted to FDUSD, a stablecoin issued by FD121 Ltd.
According to CoinMarketCap, BUSD’s current 24-hour trading volume is just under $400 million, down from around $900 million in August. The decline in trading volume can be attributed to the regulatory scrutiny that BUSD has faced in recent months.
Binance has been sued by the Commodity Futures Trading Commission (CFTC) for allegedly offering unregistered crypto derivative products in the U.S. and violating federal law. The exchange’s new CEO, Richard Teng, has recently written in a blog post that he is committed to working with regulators and ensuring that the exchange complies with American laws.