Crypto exchange Binance‘s crypto loan platform, Binance Loans, has announced that it will close all outstanding Binance USD (BUSD) credit and collateral positions. Users are advised to close their affected loans to prevent potential losses.
Binance Loans announced that it will close all outstanding credit and collateral positions in BUSD on October 25th at 11:00. The major crypto exchange advised users to pay off their affected loans by October 25th at 10:59 to prevent potential losses.
Binance, which is facing lawsuits from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and is expected to be targeted by the U.S. Department of Justice (DoJ), has been gradually removing the stablecoin BUSD from the market.
As previously reported, before the SEC filed a lawsuit against Binance, Binance.US, and CZ in June, it targeted Paxos, which issued the stablecoin BUSD, citing it as the reason for the existence of the asset. SEC considered Paxos’ issuance of BUSD a violation of securities laws and mentioned that it was preparing to file a lawsuit against the company. Following SEC’s move, Paxos suspended BUSD issuance, causing panic in the BUSD market.
Binance’s recent move in Binance Loans seems to be a step towards removing BUSD from the market, as it has been actively cleaning up BUSD trading pairs for a long time.
Binance Loans platform on Binance exchange provides services to users who want to borrow using stablecoins like BUSD and USDT, as well as top-tier cryptocurrencies like BTC and ETH. Users can provide BTC, ETH, BNB, and other cryptocurrencies as collateral to borrow credit.
The loan terms in Binance Loans are calculated based on 7, 14, 30, 90, and 180 days, while the interest is calculated hourly. Binance users have the option to repay the loan in advance, but the interest amount is rounded to the nearest hour.