Cryptocurrency exchange Binance said it will “gradually” end support for its BUSD stablecoin, removing it from spot and margin trading pairs.
Users have been asked to convert their BUSD into other assets by February next year in an announcement on Thursday.
“As Paxos has halted minting of new BUSD, Binance will gradually cease support for BUSD products,” Binance said. “Please be assured that BUSD will always be backed 1:1 by USD.”
In the more immediate future, Binance is delisting BUSD as a loanable asset on Sept. 6 and will cease withdrawals of Binance-peg BUSD tokens via BNB Chain, Avalanche, Polygon and Tron on Sept. 7.
BUSD’s 24-hour trading volume is just under $900 million, according to data by CoinMarketCap.
The stablecoin was subject to a regulatory clash in February when Paxos was ordered by the New York Department of Financial Services (NYDFS) to stop issuing it.
Binance was subsequently sued by the U.S. regulator the Commodity and Futures Trading Commission (CFTC) on allegations that it was offering unregistered crypto derivatives products against federal law.
Earlier this week, signs of a fresh legal clash for the exchange came to light when the U.S. Securities and Exchange Commission (SEC) submitted a sealed motion related to Binance, which allows it to file sensitive or confidential information without revealing the contents publicly.
UPDATE (Aug. 31, 08:57 UTC): Adds context throughout.
Edited by Oliver Knight.