Why is Binance discontinuing BUSD?
09/05/2023 •
Binance is discontinuing BUSD due to regulatory challenges and legal issues. — The majority of comments point to regulatory scrutiny faced by Binance and the legal issues surrounding Paxos, the issuer of BUSD, receiving a cease and desist order from the SEC as primary reasons. Additionally, challenges from banks and financial networks such as Mastercard cutting ties with Binance also influenced the decision.
Stats
| 53% | 40 | Mastodon |
| 37% | 28 | |
| 9% | 7 | Bluesky |
| 46% | Negative |
| 38% | Neutral |
| 16% | Positive |
| 48% | 😱 Fear |
| 21% | 😡 Anger |
| 19% | 😃 Joy |
| 11% | 😢 Sadness |
| 1% | 🥰 Love |
| 0% | 😯 Surprise |
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Story
- Regulatory Scrutiny: Binance has been facing significant regulatory scrutiny, particularly from the United States.
- Cease and Desist Order to Paxos: Paxos, the issuer of BUSD, received a cease and desist order from the SEC, leading to the decline of BUSD's market cap and prohibiting the issuance of new BUSD tokens.
- Legal Challenges against Binance: Binance is facing lawsuits from regulatory bodies like the CFTC.
- Banks and Financial Networks Severing Ties: Mastercard, Visa, and other banks have cut ties with Binance due to heavy regulations.
- Binance's Response to Market Dynamics: Binance is seen as being proactive, adapting to market changes, and promoting alternative stablecoins like TUSD and FDUSD.
- Perception of Binance: There's a mixed perception towards Binance with some seeing its actions as strategic while others view them negatively.
- SEC Allegation: The SEC has alleged that BUSD is an unregistered security investment contract, adding to the legal complications.
- Opportunity for Portfolio Diversification: The discontinuation of BUSD by Binance is seen by some as an opportunity to diversify their portfolios.
- Binance's Transparency: Many appreciate Binance's transparency in communicating their decisions amidst challenges.
- Speculation of SEC Involvement: Some users speculate on the depth of SEC involvement in Binance's decision to discontinue BUSD.
- Banking Relationships: Binance's challenges with banking relationships have been noted, with banks cutting ties due to regulations.
- Potential Coordinated Attack: Speculations exist around a coordinated attack on crypto and Binance by regulatory bodies.
- Binance's Resilience: Despite challenges, some commenters believe Binance will navigate through these regulatory hurdles.