Binance announced on August 31st that it will discontinue support for the Binance USD (BUSD) stablecoin by February 2024. This decision is in line with Paxos’ plans, which had previously indicated that it will stop supporting the Binance stablecoin at the same time. To encourage users to switch from BUSD to FDUSD, Binance has delisted eight BUSD pairings and introduced zero-fee Bitcoin (BTC) and Ethereum (ETH) FDUSD trading pairs.
The decision to discontinue support for BUSD was likely made in response to the February 13th Wells Notice sent by the Securities and Exchange Commission of the United States, which alleged that BUSD was an unregistered security. This resulted in the New York Department of Financial Services ordering Paxos, the issuer of BUSD, to stop issuing it.
To accommodate users who are looking to switch from BUSD to FDUSD, Binance has added BUSD to the list of currencies for which transactions and conversions are free. Furthermore, users are encouraged to convert their BUSD holdings into FDUSD, which was recently listed by the Hong Kong-based trust company First Digital Group on Binance in late July.
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Tags: Binance, BUSD, FDUSD, Stablecoin