Key Points:
- BUSD support phase-out triggers removal of XRP & SHIB pairs.
- Regulatory challenges lead to Paxos discontinuing BUSD issuance.
- Binance’s evolving strategy and crypto community’s watchful eyes.
In a surprising move that has reverberated across the cryptocurrency landscape, Binance, the world’s largest cryptocurrency exchange, has unveiled its strategy to eliminate specific trading pairs linked to XRP, Shiba Inu (SHIB), and other assets from its platform.
As part of this strategic shift, Binance will be discontinuing its support for its stablecoin, BUSD, leading to the removal of trading pairs involving BUSD and XRP as well as Shiba Inu (SHIB).
Binance Adjusts BUSD Support Approach
Binance recently announced its intention to gradually phase out its support for Binance USD (BUSD). This decision was precipitated by the news that the issuer of BUSD, Paxos Trust Co., has opted to halt the issuance of new BUSD coins early in the upcoming year.
This significant development prompted Binance to encourage its users to cease trading BUSD pairs and instead transition their BUSD holdings to alternative pairs.
While Binance reassured users that BUSD would retain its peg to the US dollar at a 1:1 ratio, the exchange also revealed its plans to discontinue cashouts of Binance-Peg BUSD across various networks, including Avalanche, Tron, BNB Chain, Optimism, and Polygon, in the upcoming week.
However, Binance will continue to facilitate BUSD deposits and withdrawals via Ethereum’s ERC-20 network for the foreseeable future, with no fixed timeline for the conclusion of this support.
Furthermore, Binance disclosed its intentions to delist eight BUSD pairs connected to margin trading accounts. These pairs, encompassing REQ/BUSD, FIDA/BUSD, DASH/BUSD, HOT/BUSD, PORTO/BUSD, AMB/BUSD, HARD/BUSD, and NULS/BUSD, will no longer be accessible for trading within Binance’s Isolated and Cross Margin systems.
Paxos and the Regulatory Landscape
The decisions affecting BUSD are directly influenced by Paxos Trust Co.’s ongoing challenges with regulatory authorities in the United States. In February, the Securities and Exchange Commission (SEC) informed Paxos of an impending lawsuit, alleging that BUSD operated as an unregistered security.
Subsequently, the market position of BUSD has experienced a gradual decline. While it occupied the seventh position among cryptocurrencies in February, boasting a market capitalization surpassing $16 billion, it now holds the 23rd position with a substantially reduced valuation.
Binance’s choice to remove specific trading pairs associated with XRP and Shiba Inu, driven by the waning support for BUSD, has generated significant interest within the cryptocurrency community. As the platform adapts and regulatory dynamics impact various cryptocurrencies, users and participants in the market are vigilantly observing the outcomes and potential ramifications.
Join us on Telegram, Twitter and Facebook for the latest insights and discussions in the world of crypto.
