Binance, one of the largest cryptocurrency exchanges in the world, has announced that it will stop supporting $BUSD, its own stablecoin Issued by Paxos Trust and it’s pegged 1-1 to the US dollar, by the end of 2024. This decision comes as a result of regulatory pressure and compliance issues that have affected Binance’s operations in several countries.
Binance launched $BUSD in September 2019, in partnership with Paxos Trust Company, a regulated financial institution that also issues other stablecoins such as $PAX and $PAXG. $BUSD was designed to offer traders and investors a convenient way to access the US dollar market without having to deal with fiat currency conversions or bank transfers. $BUSD is backed 1:1 by US dollars held in reserve by Paxos and is audited monthly by a third-party firm.
Since its launch, $BUSD has grown to become one of the most popular and widely used stablecoins in the crypto space, with a market capitalization of over $12 billion as of August 2023. It is supported by more than 100 platforms and services, including Binance’s own ecosystem of products such as Binance Smart Chain, Binance Pay, Binance Card, and Binance Earn. $BUSD is also integrated with several DeFi protocols and applications, such as Aave, Compound, Curve, MakerDAO, and Uniswap.
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However, despite its success and popularity, $BUSD has also faced some challenges and controversies in the past year. In June 2021, Binance was reportedly under investigation by the US Department of Justice and the Internal Revenue Service for possible tax evasion and money laundering activities involving its users and employees.
In July 2021, Binance was ordered by the UK Financial Conduct Authority to stop offering regulated services in the country without proper authorization. In August 2021, Binance was sued by a group of investors who claimed that the exchange manipulated the price of $BUSD to benefit itself and harm its customers.
These and other regulatory actions have prompted Binance to take several measures to improve its compliance and transparency standards, such as hiring former regulators and experts, implementing stricter KYC and AML policies, limiting leverage trading and derivatives products, and cooperating with authorities and industry partners. However, these measures have not been enough to appease some regulators and watchdogs, who have continued to scrutinize Binance’s activities and operations.
As a result, Binance has decided to phase out $BUSD by the end of 2024, citing “the changing regulatory landscape and customer demand”. According to a blog post published by Binance on August 31, 2023, the exchange will gradually reduce the supply of $BUSD over the next three years, until it reaches zero by December 31, 2024. During this period, Binance will continue to support $BUSD for trading, depositing, withdrawing, and redeeming on its platform and other services. However, Binance will also encourage its users to migrate to other stablecoins that are more widely accepted and regulated in their respective jurisdictions.
Binance has also assured its users that their funds are safe and that they will not lose any value or functionality during the transition process. Binance has stated that it will work closely with Paxos and other partners to ensure a smooth and seamless migration for its customers. Binance has also thanked its users for their support and trust in $BUSD over the past four years and has expressed its commitment to continue providing innovative and compliant products and services in the future.
Interestingly, Binance Japan, the Japanese subsidiary of the global cryptocurrency exchange Binance, announced that it will list 100 new tokens on its platform, tripling the current number of available tokens. This is a major expansion for the exchange, which aims to provide more options and opportunities for its users in the Japanese market.
According to a press release, Binance Japan will list the new tokens in batches, starting from September 1st. The first batch will include 20 tokens, such as Ethereum (ETH), Cardano (ADA), Polkadot (DOT), Solana (SOL), and Chainlink (LINK). The second batch will follow on September 15th, and the third batch on September 30th. The remaining tokens will be listed gradually over the next few months.
Binance Japan said that the new tokens were selected based on their popularity, liquidity, innovation, and compliance with the Japanese regulations. The exchange also said that it will conduct regular reviews of the listed tokens to ensure that they meet the standards and expectations of its users and regulators.
The CEO of Binance Japan, said that the listing of 100 new tokens is a milestone for the exchange and the Japanese crypto community. He said that Binance Japan is committed to providing a safe, secure, and diverse platform for its users, and that it will continue to explore new ways to enhance its services and products.
“We are thrilled to offer our users more choices and opportunities in the crypto space. By listing 100 new tokens, we are not only expanding our portfolio, but also supporting the growth and innovation of the crypto industry in Japan. We believe that this will benefit both our users and the entire ecosystem,” he said.