Key Points:
- Cryptocurrency exchange Binances app will stop supporting BUSD in 2024.
- Paxos will close the acquisition of BUSD by February 2024.
- BUSD was previously sued by the SEC for being an unregistered security.
After many turbulent lawsuits, market-leading cryptocurrency exchange Binance has decided to stop supporting its stablecoin BUSD in 2024.
According to an official announcement on crypto exchange Binances app, the exchange tells users it will stop supporting its stablecoin, BUSD, in 2024. And the services will be phased out until Paxos will complete the acquisition of BUSD by February 2024.
Perhaps under pressure from regulators, BUSD has made users wary even though it is still in the top 5 stablecoins by market capitalization, $3,102,462,479.
On February 13 of this year, the United States Securities and Exchange Commission (SEC) is about to file a lawsuit against Paxos Trust Company as an issuer of BUSD, alleging that the coin is an unregistered security.
Following that, US-based blockchain infrastructure platform Paxos Trust Company announced it would stop issuing new Binance stablecoins from February 21. At the time, Changpeng Zhao (CZ), CEO of Binance, said BUSD holders shouldnt worry as Paxos will manage the conversion and fully cover the reserves in their bank.