Is Binance Going To Cease BUSD Support?

Do you hold BUSD? Or, maybe you use BUSD to do crypto trading? Crypto exchange Binance is going to cease Binance USD (BUSD) support. It will keep supporting crypto assets and other stablecoins in its exchange. Binance advised users to convert their BUSD stablecoin into other digital assets before February 2024.

I used to use BUSD to do trading at some point, but not anymore. You can check out your BUSD balance in case anything is still there. Users have the option to trade BUSD for FDUSD at zero trading fees. Users got incentives to use BUSD in the Binance exchange before. I did not expect that it would happen to BUSD one year ago.

Don't jump on any stablecoins before doing any research. You take risks even when you hold any stablecoin. It is clear that stablecoins are not risk-free. You can take the risk to the extent that you can manage. People do not want to lose everything holding stablecoins like UST.

Have you ever thought that BUSD would come to an end like this? It started with Paxos, the issuer of BUSD, getting a Wells notice from the US Securities and Exchange Commission. Then the company stopped issuing new BUSD stablecoin. Paxos wanted to continue managing the redemption of BUSD.

But now we know that Paxos will stop the redemption by February 2024. Binance confirmed in its announcement that it will delist BUSD spot and margin trading pairs as well as stop other services related to BUSD gradually. The exchange will cease BUSD borrowings on Cross Margin on September 7, 2023.

Binance Gift Card is going to delist BUSD on September 30, 2023. So what happened to BUSD Gift Cards created before September 30? Users can still redeem Binance Gift Cards containing Binance USD (BUSD). It is better to sell BUSD to get other crypto as soon as you can.

You have enough time to convert your BUSD into other crypto assets. Before writing this post, I checked out my BUSD balance in case any remaining balance was there. Unfortunately, in crypto, you cannot say how long a specific crypto product will survive in the market.

You can expect something will happen in the future and a particular crypto project will do better. Due to regulatory security and challenging market conditions, it is difficult to predict what will happen next and which crypto project will be replaced by a better one.

Now Binance is in a legal battle with the SEC. BUSD is claimed to be unregistered securities. The SEC pressed different charges against Binance and Binance CEO. Recently the exchange has been highly criticized for allowing sanctioned Russian banks as payment methods in its P2P marketplace.

Binance quickly took action to remove the sanctioned banks so that it could not be traded even under yellow and green codewords. They do not want to get in more trouble which might put more pressure on the exchange. Hope Binance will handle this situation and come out stronger than before.

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