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Binance, still the world’s largest cryptocurrency exchange by trading volume, has made a shocking announcement today. Looking at the details of the announcement shared minutes ago, it is seen that Binance is starting to reduce support for its own stablecoin, BUSD.
Binance Reduces Support for Binance USD
As expected, the main reason for this is the increasing regulatory pressure and Binance’s ongoing struggles in almost every country. Binance USD, which is introduced as Binance’s own stablecoin and bears the name of Binance, now seems to be gradually abandoned.
It was already known that Paxos, the issuer of BUSD, had stopped issuing new BUSD, and Binance emphasized that they will gradually reduce and end BUSD support on the platform in response to this. While it is stated that BUSD will always have USD support at a 1:1 ratio, it was conveyed that other stablecoins on the platform will gradually take its place.
In the detailed statement made by Binance regarding the issue, it was emphasized that users can exchange their BUSD balances with other assets until February 2024. While it was stated that BUSD can be exchanged for FDUSD without any transaction fees, it was emphasized that there is a 1:1 collateral between BUSD and FDUSD.
BUSD Withdrawals and Deposits Are On Hold
Binance first stated that they will delist BUSD from spot and margin trading. It was stated that separate delist announcements will also be made. Although it is stated that users can actually achieve the same function by turning to other stablecoins, it was announced that Binance will also end BUSD borrowing transactions as of September 7, 2023. Users will no longer be able to use BUSD as collateral for new positions from this date onwards.
As of September 7, BUSD token withdrawals will also be suspended for BNB Chain, Avalanche, Polygon, and Tron networks. Withdrawals based on the Ethereum network will continue until a new announcement is made.
Depositing BUSD tokens via BNB Chain, Avalanche, Polygon, and Tron networks will be supported until a new announcement is made. This move clearly shows that surprise events related to Binance are still happening and Binance’s troubles seem to continue.
