Binance to support BUSD while exploring non-USD stablecoins, CZ says
Cryptocurrency exchange Binance plans to continue supporting its Binance USD (BUSD) stablecoin despite its issuer Paxos facing a stop order from American regulators.
As reported by Cointelegraph, the New York Department of Financial Services (NYDFS) has ordered blockchain firm Paxos to cease issuing dollar-pegged stablecoin BUSD. Paxos has also received a wells notice from the United States Securities and Exchange Commission (SEC) alleging that BUSD is an unregistered security.
Binance CEO Changpeng ‘CZ’ Zhao has moved to assure users that funds are safe despite the intended enforcement action. A Twitter thread on Feb. 13 noted that Paxos is regulated by the NYDFS and BUSD is ‘wholly owned and managed by Paxos.’
#BUSD. A thread. 1/8In summary, BUSD is issued and redeemed by Paxos. And funds are #SAFU!
According to Zhao, Paxos will continue to service BUSD and manage redemptions and has also made assurances of its reserves which have been audited by multiple parties. As a result of the enforcement action, the Binance CEO said that BUSD market cap will decrease over time and the exchange will explore non-USD based stablecoins.
Zhao also said that Binance will continue to support the stablecoin on its exchange, while acknowledging that users may well migrate to other stablecoin tokens as a result of the enforcement action.
Related: ‘Agent of an anti-crypto agenda’ — Community slams Gensler over Kraken crackdown
This will also see Binance consider ‘product adjustments’, with a move away from using BUSD as its main trading pair for numerous tokens available across the exchange. Binance’s CEO also cautioned that the actions taken by the SEC and NYDFS could have a significant impact on the ongoing development of the
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