The cryptocurrency exchange Binance announced that it would discontinue support for its BUSD stablecoin. The exchange will gradually remove BUSD from spot and margin trading pairs, prompting users to transition their BUSD holdings to other assets.
The move comes after Paxos halted minting for a new BUSD in response to the New York Department of Financial Services’ order. Following the move, Binance will no longer support BUSD as of December 15th.
According to the announcement, Binance will stop supporting BUSD withdrawals on December 31st, and the remaining balance will be automatically converted to FDUSD, except in selected regions.
Binance had previously announced plans to gradually phase out BUSD support by February 2024 in August. Simultaneously, it urged users to switch to another stablecoin, FDUSD. Binance emphasizes that users can still convert BUSD to FDUSD without incurring any fees.
Paxos has confirmed that “BUSD will remain supported by Paxos and redeemable through at least February 2024,” Binance stated in a blog post. BUSD’s 24-hour trading volume currently sits around $900 million, as per CoinMarketCap data.