Turning the Tides: Binance's Bold Move Away from BUSD Support
Big Moves in the Crypto World! Binance Shifting Gears as It Phases Out BUSD Support. In a surprising turn of events, Binance has just confirmed its plans to stop supporting BUSD by February 2024. This announcement follows Paxos' earlier decision to cease BUSD support, aligning both giants in the crypto realm.
In a recent tweet by @NuBraveIN stated:
“Binance will stop BUSD in 2024. According to an official announcement on the crypto exchange Binance’s app, the exchange pops up a notification for users that they will stop supporting BUSD in 2024. This is an alignment with Paxos phase-out for purchasing BUSD by February 2024.”
This marks the first official statement from Binance after eagle-eyed users spotted hints of this change in their mobile app.
Binance is urging its users to take action by converting their BUSD holdings into other assets. And there's a new player in town: First Digital USD (FDUSD), a stablecoin introduced by Hong Kong-based trust company First Digital Group, has emerged as a promising alternative. It's been gaining traction since its Binance listing in late July.
Good news for traders: Converting from BUSD to FDUSD comes with zero fees. Binance even streamlined the process by delisting eight BUSD pairs on August 30. Plus, they've been sweetening the deal with zero-fee trading pairs for FDUSD against Bitcoin and Ether.
What's driving this shift? It all traces back to a February 13th move by the U.S. Securities and Exchange Commission, which raised questions about BUSD's regulatory status. On the same day, the New York Department of Financial Services ordered Paxos to halt BUSD issuance.