Binance, the popular cryptocurrency exchange, has announced its decision to discontinue support for Binance USD (BUSD) by February 2024. In response, Binance is encouraging users to convert their BUSD holdings into First Digital USD (FDUSD), a newly listed stablecoin. The move comes after Paxos, the issuer of BUSD, also revealed its plans to stop supporting the stablecoin by February 2024.
Binance’s official statement confirms previous rumors about the suspension of BUSD support. The decision is consistent with Paxos’ intention to halt BUSD redemption. Numerous customers had reported seeing a pop-up notification on the Binance mobile app, indicating the upcoming support suspension.
Converting BUSD to First Digital USD (FDUSD)
Binance is advising users with BUSD holdings to exchange or convert them to First Digital USD (FDUSD), a stablecoin introduced by Hong Kong-based trust company First Digital Group in June. FDUSD made its debut on Binance in late July. As part of the transition, Binance has removed eight BUSD trading pairs and added BUSD to the list of currencies with free transactions and conversions. In addition, Binance has introduced zero-fee FDUSD trading pairings for Bitcoin (BTC) and Ethereum (ETH) to incentivize customers to utilize the new stablecoin.
The discontinuation of BUSD support by Binance appears to be in response to the U.S. Securities and Exchange Commission’s (SEC) allegations that BUSD is an unregistered security. The SEC sent a wells notice to Paxos on February 13, the same day the New York Department of Financial Services ordered Paxos to cease issuing BUSD.
What is BUSD?
BUSD is a stablecoin issued by Paxos and listed on the Binance cryptocurrency exchange. It is designed to maintain a 1:1 ratio with the U.S. dollar, providing stability in the volatile world of cryptocurrencies.
What is FDUSD?
FDUSD is a stablecoin introduced by First Digital Group, a Hong Kong-based trust company. It is pegged to the U.S. dollar and aims to provide a reliable and secure digital representation of fiat currency.
Why is Binance ending support for BUSD?
Binance is discontinuing support for BUSD in response to allegations from the U.S. Securities and Exchange Commission that it is an unregistered security. This decision aligns with Paxos’ plans to stop supporting BUSD as well.
How can users convert their BUSD to FDUSD?
Binance has provided instructions on how users can exchange or convert their BUSD holdings into FDUSD. Users can follow the guidelines provided by Binance to complete the conversion process.
When will Binance cease support for BUSD?
Binance plans to end support for BUSD by February 2024. Users are encouraged to convert their BUSD holdings to FDUSD before that time.
Will there be any fees for converting BUSD to FDUSD on Binance?
Binance has announced zero fees for transactions and conversions involving BUSD. Therefore, users can convert their BUSD holdings to FDUSD without incurring any additional charges.
Is FDUSD available on other cryptocurrency exchanges?
At the moment, FDUSD is exclusively listed on Binance. Users who wish to acquire or trade FDUSD can do so on the Binance platform.
Is FDUSD regulated?
As FDUSD is introduced by First Digital Group, a Hong Kong-based trust company, it is subject to regulatory oversight in accordance with the laws and regulations of Hong Kong. Users are advised to familiarize themselves with applicable regulations and conduct due diligence before engaging with FDUSD.
Binance, a leading cryptocurrency exchange, is discontinuing support for Binance USD (BUSD) and encouraging users to convert their BUSD holdings into First Digital USD (FDUSD), a new stablecoin introduced by First Digital Group. The decision follows allegations from the U.S. Securities and Exchange Commission and the New York Department of Financial Services regarding BUSD’s status as an unregistered security. Binance plans to end support for BUSD by February 2024.