In an announcement that has sent shockwaves through the crypto community, Binance, the world’s largest cryptocurrency exchange, revealed its plan to remove certain trading pairs related to XRP, Shiba Inu (SHIB), and others from its platform.
As part of this decision, Binance will no longer support its stablecoin, BUSD, which will translate to the removal of BUSD trading pairs related to XRP and Shiba Inu (SHIB).
As Paxos has halted minting of new BUSD, #Binance will now gradually remove support for the stablecoin on our platform.
BUSD will always remain backed 1:1 by USD, and we continue to support a wide range of other stablecoins.
Find more details below.
— Binance (@binance) August 31, 2023
Read Also: Coinbase Says Stablecoins are not Securities, Condemns SEC Attack on BUSD
Binance Takes a Step Back from BUSD Support
Binance recently declared its intention to gradually phase out its support for Binance USD (BUSD). The decision was prompted by news that the BUSD issuer, Paxos Trust Co., has decided to stop minting BUSD early next year.
This significant development has led Binance to encourage its users to discontinue trading BUSD pairs and instead convert their BUSD holdings to alternative pairs.
While Binance assured users that BUSD will maintain its peg to the US dollar on a one-to-one ratio, the exchange announced that it will cease cashouts of Binance-Peg BUSD on Avalanche, Tron, BNB Chain, Optimism, and Polygon networks in the coming week.
However, Binance will continue to accept BUSD deposits and withdrawals via Ethereum’s ERC-20 network for the time being, with no fixed end date for this support.
Additionally, Binance revealed plans to delist eight BUSD pairs associated with margin accounts. These pairs, including REQ/BUSD, FIDA/BUSD, DASH/BUSD, HOT/BUSD, PORTO/BUSD, AMB/BUSD, HARD/BUSD, and NULS/BUSD, will no longer be available for trading on Binance Isolated and Cross Margin.
Read Also: Crypto.Com Launches Terra Classic (LUNC) Against USDT and BUSD Trading Pairs
Paxos and Regulatory Challenges
The decisions impacting BUSD directly stem from Paxos Trust Co.’s struggles with US regulatory authorities. In February, the Securities and Exchange Commission (SEC) informed Paxos of an upcoming lawsuit, contending that BUSD functioned as an unregistered security.
Since then, BUSD’s position in the market has steadily declined. While it held the position of the seventh largest cryptocurrency in February, with a valuation exceeding $16 billion, it now sits at 23rd place with a significantly reduced valuation.
Binance’s removal of certain trading pairs involving XRP and Shiba Inu due to the declining support for BUSD has generated significant interest within the crypto community. As the platform evolves and regulatory challenges impact various cryptocurrencies, users and market participants closely monitor the outcomes and potential implications.
Follow us on Twitter, Facebook, Telegram, and Google News
