Binance, the world’s largest cryptocurrency exchange, continues to face regulators.
Finally, facing pressure from US regulators, Binance is making new moves to stop the printing of BUSD.
In this context, Binance announced today that 2 billion BUSD will be burned in BNBChain.
As collateral for the BUSD burn, the BUSD on Ethereum will be released.
“Later today, Binance will burn $2 billion worth of idle BUSD on the BNB Chain.
The same amount of BUSD on the Ethereum network used as collateral will be released later.”
later today, #Binance will burn $2bn worth of idle BUSD on BNB Chain.
The same amount of BUSD on the Ethereum network, which was used as collateral, will then be released.
— Binance (@binance) February 22, 2023
Sharing Binance’s announcement, Chinese crypto journalist Wu Blockchain said that data from Etherscan shows that the total amount of BUSD has already dropped to 12.3 billion, from the previous 16.1 billion.
Binance announced that it will burn 2 billion Binance-Peg BUSD on BNBChain today, and the BUSD on Ethereum as collateral will be released. Etherscan shows that the total amount of BUSD has dropped from the previous 16.1b to the current 12.3b.
— Wu Blockchain (@WuBlockchain) February 22, 2023
What Happened?
US regulators ordered Paxos, the issuer of Binance’s stablecoin BUSD, to stop issuing new BUSD.
After this instruction, as there was no new BUSD, BUSD lost its stability to 1 dollar after the events.
As BUSD regains its peg to $1, Paxos CEO Charles Cascarilla said in a statement. BUSD said its issuer, Paxos, is engaged in constructive negotiations with the SEC.
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