In a Thursday blog post, leading cryptocurrency exchange, Binance announced that it will stop supporting BUSD products. Therefore, the exchange urged users to convert their BUSD assets into other supported assets on the Binance platform before February 2024. The firm also pledged its continued support for other stablecoins and digital assets listed on its platform.
According to the post, users will be able to trade their BUSD holdings for FDUSD at zero trading fees. They will be able to do this at 1:1 ratio. Likewise, Binance revealed that it will gradually delist BUSD spot and margin trading pairs on its network.
Similarly, the borrowing of BUSD on Cross Margin will cease to exist on the platform at exactly 06:00 (UTC) on 07-09-2023. Also, users of Cross Margin and Portfolio Margin won’t be able to transfer additional BUSD as new collateral to Cross Margin Wallet.
Worthy of note that Binance took the decision to halt its support for BUSD after the SEC declared the asset as an unregistered security. Consequently, the New York Department of Financial Services ordered Paxos to stop issuing BUSD.
Binance and its numerous lawsuits in the U.S.
Recall that the United States Security and Exchange Commission sued Binance and its CEO, Changpeng Zhao for breaking Securities rules. In the suit, the SEC alleged that the exchange offered unregistered securities to the general public in the form of its BNB token and Binance USD (BUSD) stablecoin. The commission also alleged that Binance used customer funds to secretly trade security.
Likewise, Binance is also facing another lawsuit with United States Commodity Futures Trading Commission (CFTC). The regulator accused Zhao of operating an illegal exchange and sham compliance program. Zhao was also charged with willful violation of the U.S. laws.
Also, the regulator alleged that CEO instructed its employees and customers to compromise the firm’s compliance system. It banked its claim on the report published by Reuters, accusing Binance of fostering money laundering through its fake compliance mechanism. The report said the exchange processed about $10 billion for criminals to evade U.S sanctions.