Binance Confirms Plans to Withdraw Support for BUSD in December
- The US SEC deems BUSD an unregistered security.
- Authorities in the Philippines claim Binance operates without a license.
- Binance has urged users to withdraw their existing BUSD on the exchange before December 15.
Crypto exchange Binance has confirmed plans to withdraw support for the BUSD stablecoin on December 15 following Paxos’s decision to stop minting new coins. Binance shared the news in a blog post on Wednesday, urging users to withdraw their existing BUSD on the exchange or convert them into other assets.
Wednesday’s announcement was Binance’s recent attempt to discontinue support for the BUSD stablecoin. The exchange had previously said it would steadily stop supporting BUSD. In October, Binance ceased lending and borrowing services for BUSD.
BUSD is one of the leading stablecoins. However, earlier this year, the US Securities and Exchange Commission (SEC) claimed BUSD was an unregistered security. As a result, the New York Department of Financial Services ordered Paxos, the company minting the stablecoin, to halt its issuance.
U.S. officials have stepped up their efforts to crack down on cryptocurrency companies, including Binance, this year. The crypto exchange recently struck a settlement with the US government, resulting in the resignation of its founder, Changpeng Zhao. Binance also agreed to pay more than $4 billion in fines.
Binance appointed Richard Teng as its new CEO. However, the exchange still faces regulatory concerns in other countries. Authorities in the Philippines informed locals that Binance was not licensed to provide securities or promote its services.
“Based on the Commission’s database, the operator of the platform Binance is not registered as a corporation in the Philippines and operates without the necessary license and/or authority to sell or offer any form of securities as defined under Section 3.1 of the SRC,” the commission wrote.
The Philippine Securities and Exchange Commission (SEC) requires crypto platforms like Binance to register and provide information about the nature and pricing of their offerings. The commission is seeking to restrict local access to Binance and has asked Meta and Google to block Binance ads for Filipinos.
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