Binance Discontinues BUSD Support in US; Here’s What Users Need to Do

Leading cryptocurrency exchange Binance has announced that it will be discontinuing support for its BUSD stablecoin. This move comes amid increasing regulatory scrutiny in the United States, following concerns raised in the wake of the FTX and Alameda Research incidents last year.

In response to the discontinuation of BUSD support, Binance has encouraged users holding BUSD stablecoins to convert their holdings into other supported stablecoins such as Tether (USDT), Circle (USDC), FDUSD, and TUSD. The exchange has assured users that the conversion can be made at a 1:1 ratio back to the United States dollar whenever needed.

Here’s What the Process Will Be Like

The discontinuation of BUSD support will take place in two phases. Beginning on September 7, BUSD borrowings on Cross Margin will be suspended. On October 29, Cross Margin and Portfolio Margin users will no longer be able to utilize BUSD as new collateral in the Cross Margin Wallet.

However, the option to use BUSD holdings in other tokens as collateral will remain available.

Binance Is Still in Hot Water

The regulatory challenges faced by Binance include assertions by the United States Securities and Exchange Commission (SEC) that its native cryptocurrency, Binance Coin (BNB), qualifies as a security. This has led to allegations of unauthorized operations within the US. Additionally, Binance has been accused of involvement in money laundering activities and listing digital assets as unregistered securities.

Binance Remains Loyal to the US

Earlier this year, Paxos Trust made headlines by discontinuing the issuance of new BUSD stablecoins, following directives from the New York Department of Financial Services (NYDFS). Despite these setbacks, Binance remains committed to asserting its position within the United States, emphasizing the enduring significance of digital assets in the global financial landscape.

Do you think this is a good move for Binance? Why or why not?