Binance is phasing out BUSD lending services. In this vein, he urges users to explore alternative stablecoins amid regulatory challenges.
Paxos terminates ties amid regulatory pressure
Binance is phasing out Binance USD (BUSD) lending services as of October 25. This move is the latest in a series of steps to halt all BUSD-related offers by 2024. This decision of the stock exchange is in line with the previous stance of New York fintech company Paxos. cryptokoin.comAs you follow from , Paxos was aiming to terminate its relationship with the exchange due to legal problems with the US Securities and Exchange Commission (SEC).
Additionally, Paxos had highlighted its plan to halt BUSD redemptions into US cash and Treasuries by February 2024. In addition, the new Binance USD (BUSD) issuance has been temporarily suspended. Prior to this announcement, BUSD had an impressive market cap of $23 billion in November 2022. However, that value has since dropped to $2.23 billion.
Binance directs users to alternative stablecoins
Last month, Binance suspended BUSD withdrawals across multiple blockchain networks in a strategic shift. However, they continued the service on the Ethereum network. The exchange urged users to switch their BUSD holdings to fiat or other crypto options within the next year. Binance encouraged its customers to transfer their BUSD holdings to other stablecoins in another significant move. At one point, he focused on First Digital Group’s newly launched First Digital USD (FDUSD). This Hong Kong-based trust company launched its stablecoin on Binance in late July.
Binance’s actions follow US SEC allegations that BUSD is functioning as an unregistered security. As a result, the New York Department of Financial Services requested Paxos to cease issuance of BUSD. In this challenging environment, Binance is trying to overcome regulatory hurdles. Therefore, it is important for users to stay updated and make informed decisions regarding their BUSD holdings.
New case: Binance manipulated the death of FTX!
Cryptocurrency exchange Binance is facing new legal troubles after being hit with a class-action lawsuit alleging the firm deliberately triggered the implosion of bankrupt rival FTX. The lawsuit, filed in California and led by plaintiff Nir Lahav, alleges that Binance violated securities law and engaged in unfair competition to undermine FTX’s business.
In particular, it points out that Binance CEO Changpeng Zhao’s tweet in November 2022, announcing the firm’s intention to sell FTX Token (FTT) assets, was a pre-planned move to sow distrust and trigger FTT sales.
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