Binance, a major cryptocurrency exchange, has announced that it will end support for BUSD, a stablecoin pegged to the US dollar, on December 17th, 2021. The decision was reportedly made due to low trading volumes of BUSD on the platform.

BUSD was launched in partnership with Paxos in 2019 and has since become a popular stablecoin option for traders and investors. It is currently listed on several major exchanges, including Binance, Coinbase, and Kraken.

In a statement, Binance stated that BUSD holders on the platform should withdraw their funds before the deadline. The exchange also noted that BUSD deposits and withdrawals will be suspended on December 10th, 2021, to allow for a smooth transition.

While the announcement may come as a surprise to some, Binance has been known to delist assets with low trading volumes in the past. In fact, the exchange has reportedly delisted over 100 cryptocurrencies since 2018.

This move also comes amid increased regulatory scrutiny of stablecoins and their potential risks to financial stability. Earlier this year, the US Treasury Department announced plans to regulate stablecoins, citing concerns over their potential use for illicit activities.

Conclusion

In conclusion, Binance’s decision to end support for BUSD may be disappointing for some traders and investors. However, it is not uncommon for exchanges to delist assets with low trading volumes, and this move is likely a result of Binance’s efforts to streamline its offerings. As the regulatory landscape for stablecoins continues to evolve, it remains to be seen how this will impact the industry as a whole.