Binance CEO Changpeng “CZ” Zhao said on Saturday that Binance will now support multiple stablecoins and discontinued the Binance USD (BUSD) automatic conversion policy introduced last September. The move came surprisingly after Circle's USDC stablecoin was canceled due to the company's $3.3 billion exposure to Silicon Valley bank.
According to an official announcement on March 11, Binance has stopped automatic BUSD conversion of new deposits from USDC, USDP, and TUSD. Users will not be able to withdraw USDC, USDP or TUSD from their BUSD balances.
Moreover, users can convert BUSD to USDC or USDP at a ratio of 1:1 through the Binance Convert feature until 06:00 AM UTC on March 18th. Announce a deadline for transferring TUSD.
Notably, the conversion of TUSD, USDC, or USDP to BUSD is not valid as Binance earlier announced the end of BUSD support as Paxos stopped minting BUSD after US regulators ordered the company.
Binance has also added several stablecoins to support the crypto community after removing USDC from Circle. Users can trade on new spot trading pairs BNB / TUSD, BTC / TUSD, ETH / TUSD, TUSD / USDT, USDC / USDT and USDP / USDT.
Anti-Regulatory Stance in the US Last year, Binance ended support for competing stablecoins including USD Coin (USDC), USDP, and TUSD to boost liquidity and capital efficiency for users. This led to a rise in the dominance of BUSD and other stablecoins such as USDT and USDC continued to fall.
The Binance CEO believes that US regulators have launched a campaign against Binance to end its dominance in the cryptocurrency market out of fear of foreign control. The regulators also opposed the acquisition of the bankrupt cryptocurrency lending assets of Binance.us, the US arm of Binance, Voyager Digital. Meanwhile, Binance.US won bankruptcy court approval for the acquisition but the US Department of Justice challenged the judge's decision.
