Binance CEO CZ said they will be able to work with other manufacturers like Circle after the restrictive move from the US to stablecoin companies.
Binance moves away from BUSD
CEO Changpeng Zhao turned away from BUSD after US regulators ordered it to cease production of stablecoin BUSD. On Monday, Paxos, the company authorized to issue BUSD, said it would stop issuing new tokens at the request of the New York Department of Financial Services (NYDFS), but denied regulators’ claims that the cryptocurrency pegged to the value of the US dollar constitutes an unregistered security.
“BUSD is not being issued by Binance,” Zhao said at a Twitter meeting on Tuesday. “We have an agreement to allow manufacturer Paxos to use our brand, but it’s not something we created,” he said. “As BUSD disappears and BUSD gradually declines over time, we will continue to work with more stablecoin issuers or creators,” Zhao said, referring to the current support for other stablecoins such as USD coin (USDC) and Tether (USDT). he added.
Zhao was also harsh on allegations reported by Bloomberg that rival stablecoin firm Circle had alerted NYDFS over concerns that Binance didn’t have enough reserves to back up its BUSD tokens. “I really don’t believe Circle would do that – I don’t think a professional industry colleague would want to do that to any other industry colleague,” he said. He also added, “As we’re seeing right now, it’s hurting the general industry… I wouldn’t take this article too seriously right now.”
cryptocoin.com As a result of the above developments, we mentioned that BUSD lost its price stability. Following market concerns, many investors switched from USDC and DAI to Tether (USDT), along with BUSD.
CZ thinks Circle is out of the way
CEO CZ thinks Circle is not behind it as the regulatory action surrounding BUSD, Binance and Paxos will hurt them too. However, he welcomed India’s move to have a common regulatory framework for crypto regulation among G20 countries. He said it’s better to have any regulatory framework than to have any clarity. The country administration, which currently holds the G20 term presidency, is actively negotiating with the member states on the regulation of the Web 3.0 space.
While the Binance CEO talks about strict guidelines for the crypto space in many countries, he says it’s natural for governments to tighten policy around new inventions first. He thinks the first draft will always be too tight before iterations lead to slack in the regulatory framework. CZ said that Binance is working with many regulators and global industry associations on web 3.0 regulation.
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