The world’s largest exchange, Binance, has announced plans to delist eight Binance USD (BUSD) trading pairs as the company looks to withdraw full support of the stablecoin by 2024. This follows increased regulatory pressure on the stablecoin in 2023, which has led to a drastic decline in its market share so far.
Binance To Delete Nine Margin Trading Pairs By September 7
In a blog post on Wednesday, Binance laid out intentions to delist eight BUSD cross margin and isolated trading pairs. These include AMB/BUSD, DASH/BUSD, FIDA/BUSD, HARD/BUSD, HOT/BUSD, NULS/BUSD, PORTO/BUSD and REQ/BUSD. In addition, the exchange will also be deleting the IOST/BTC margin trading pair.
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According to Binance, the delisting process will occur in two stages. Firstly, the exchange will suspend all isolated margin borrowing for these specific pairs on September 1, 2023, at 06:00 (UTC).
Thereafter, Binance will close all users’ positions, terminate any pending order, and enable an automatic settlement before proceeding to delist these pairs from its isolated margin market on September 7, 2023, at 06:00 (UTC). On the same day and at the same time, these trading pairs will also be removed from Binance’s cross margin market.
Binance has stated that users would not be permitted to modify their trading positions during the delisting procedure. Thus, they are advised to close all open positions and transfer their assets from margin wallets to spot wallets prior to September 7 to avoid any possible losses.
In the announcement, the exchange did not state a specific reason for delisting eight BUSD pairs at once. However, emerging reports indicate that this move is part of a much larger plan by the crypto exchange.
Binance To Cease Full Support For BUSD In 2024?
According to several posts on the social media platform X, Binance plans to terminate its support for its native BUSD stablecoin by 2024, urging users to convert the token to other crypto assets. This development was revealed via a pop-up notification on the exchange’s mobile app.
Binance will stop supporting BUSD in 2024.
According to an official announcement on crypto exchange Binance’s app, the exchange pops up a notification for users that they will stop supporting BUSD in 2024. pic.twitter.com/pkEBAaBJx8
— btvmedia (@btv_Dao) August 30, 2023
Although there was no specific date in the notification, it was stated that Paxos Trust, BUSD’s issuer and operator, will stop BUSD redemption by February 2024. Following this, Binance will gradually withdraw its support for the stablecoin.
As earlier stated, the BUSD token has been affected by the high level of regulatory scrutiny faced by the cryptocurrency industry in 2023.
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In February, the New York Department of Financial Services ordered Paxos to halt the issuance of BUSD, citing “several unresolved issues related to Paxos’ oversight of its relationship with Binance regarding Paxos-issued BUSD.”
Following this directive, BUSD has lost over 80% of its market cap, falling from $16.13 billion on February 9 to its current value of $3.1 billion based on data from Tradingview.