Binance asks users to give up their cryptocurrency

Binance Coin close to BNB trading screen with BUSD
Binance Coin close to BNB trading screen with BUSD

In a statement published Thursday (31), the binance asks its users for their Binance USD (BUSD) for other stablecoins. As a suggestion, the broker points out that investors can convert BUSD to First Digital USD (FDUSD) without paying a fee.

Earlier this year, in February, Paxos was forced by the US government to pause new BUSD minting. Although named after Binance, the stablecoin is issued by Paxos, also responsible for Pax Dollar (USDP).

After the decision, the BUSD already in circulation remained on the market, but Binance plans to reduce its use. For example, the broker Changpeng Zhao noted that it will gradually remove trading pairs with BUSD and other services. So this explains the reason for the conversion request.

Binance says it is leaving its stablecoin

Before facing sanctions from US regulators, Binance USD (BUSD) already had a market cap of $23.5 billion, threatening other rivals such as Tether (USDT) and USD Coin (USDC). However, with no growth forecasts, Binance claims that support for the project will be slowly phased out.

“With Paxos stopped issuing new BUSD, Binance will gradually stop supporting BUSD products”pointed to the brokerage in the statement. “Announcements will be released for all affected services.”

Anyway, even if Binance gave up on its cryptocurrency, he wanted to emphasize that Binance USD (BUSD) will always be backed 1:1 to the US dollar. Therefore, there is no good reason to convert to other currencies.

“Users are encouraged to convert their BUSD into other assets available on Binance before February 2024. Rest assured that BUSD is always backed 1:1 against the US dollar.”

Subsequently, the statement also points out that Binance will suspend cross-margin services with BUSD as early as September next year. Unlike deposits, withdrawals of BUSD-linked tokens on BNB Chain, Avalanche, Polygon, and Tron will also be suspended on September 7.

BUSD withdrawals and deposits on Ethereum will continue to work.

Other affected services are programs to deserve It is Paylike loans It is gift cards. All dates can be verified in the broker’s official announcement. Further announcements regarding peer deletions will be made individually, Binance has concluded.

Binance announces removal of 9 trading pairs

Binance had already announced the removal of 10 cryptocurrency trading pairs this Wednesday (30). On Thursday (31), the brokerage announced the removal of another 9 pairs.

AMB/BUSD, DASH/BUSD, IFAD/BUSD, HARD/BUSD, HOT/BUSD, IOST/BTC, ZERO/BUSD, PORT/BUSD It is REQUEST/BUSD will be removed from isolated margin service this Friday (1). This Thursday (7) all orders for these pairs will be closed.

While deleting pairs is common in the market, Binance appears to be undergoing internal restructuring due to the frequency of such announcements. Finally, Binance Coin (BNB) is priced at $224 at the time of writing, down 67.6% from its 2021 high and 9.2% from the year 2023.

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