Binance crypto exchange announced in late August that it is moving to end support for its beloved BUSD stablecoin. This move comes amid the stablecoin’s run-in with regulators, leading to a halt in its production. And now, the exchange has started moving to begin the end of support for the stablecoin.
Binance Starts Burning Tokens
Binance took to its official X (formerly Twitter) account on Thursday, September 14, to announce that it would begin burning a number of Binance-pegged tokens. Among the five tokens listed to be burned, four were BUSD tokens across different blockchains. According to the announcement, the Binance-pegged tokens would be burned on the listed blockchains, and then the exchange would release the equivalent amount of tokens that were initially used as collateral on their native networks.Later today, will burn a number of idle Binance-pegged tokens. The equivalent amount of tokens on their native networks, which were used as collateral, will then be released.The BUSD tokens listed across four networks include BUSD on the Polygon (MATIC) network, BUSD on the Tron (TRX) network, BUSD on BSC, and BUSD (BNB). In addition to these, the exchange also revealed that the TUSDOLD on BSC would be burned as well, making it the only token on this list that is not BUSD. The collateral in this case will be the equivalent of the Binance-pegged tokens that are . So if 1,000 BUSD on the MATIC network is burned, then the equivalent on the native blockchain will be released by the exchange.Tokens:
— Binance (@binance)
🔸TUSDOLD (BSC)
🔸BUSD (MATIC)
🔸BUSD (BSC)
🔸BUSD (BNB)
🔸BUSD (TRX)
Fire In The BUSD Camp
The BUSD stablecoin first came under fire in early 2023 when the United States Securities and Exchange Commission (SEC) to issuer Paxos alleging that the stablecoin was an unregistered security. The regulator, through this, made its intention to pursue legal action known.Binance has also announced plans to stop offering support for the stablecoin completely by 2024. Paxos also revealed that it will cease all BUSD redemptions in February 2024, and Binance’s complete withdrawal is expected to come shortly after this.
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