- Binance aims to stop support for BUSD by February 2024.
- The Binance USD stablecoin was being issued by Paxos before the New York Department of Financial Services ordered it to stop.
- Paxos has also indicated that it will stop support of the Binance stablecoin by February 2024.
With plans to discontinue support for Binance USD (BUSD), the Binance cryptocurrency exchange has urged users to begin converting their BUSD holdings into FDUSD, a newly listed stablecoin.
Binance confirmed earlier rumours that it will gradually remove support for BUSD by February 2024 in a statement on August 31. This decision is in line with Paxos’ plans to stop BUSD redemption at that time.
Binance’s official statement comes after multiple customers uploaded photos of a pop-up announcing the upcoming support suspension on their mobile app.
Converting BUSD to First Digital USD (FDUSD)
In the statement, Binance is encouraging its users who still have BUSD in their wallets to exchange or convert their BUSD balances for First Digital USD (FDUSD), a new stablecoin that was introduced in June by the Hong Kong-based trust company First Digital Group and made its debut on Binance in late July.
Binance delisted eight BUSD pairings on August 30 and added BUSD to the list of currencies for which transactions and conversions are free. On the other hand, the exchange previously announced zero-fee Bitcoin (BTC) and Ethereum (ETH) FDUSD trading pairings to encourage customers to utilize the stablecoin.
Binance’s move to stop supporting BUSD appears to be in response to the Securities and Exchange Commission of the United States alleging in a wells notice it sent to Paxos on February 13 that BUSD was an unregistered security.
Paxos was told to stop issuing BUSD by the New York Department of Financial Services on the same day the SEC sent the wells notice.