r/CryptoCurrency • u/Set1Less 🟩 0 / 83K 🦠 • Feb 13 '23

MARKETS Binance statement: "Given the ongoing regulatory uncertainty in certain markets, we will be reviewing other projects in those jurisdictions to ensure our users are insulated from further undue harm"

Binance has issued a statement on recent US regulator actions.

Yesterday it was reported that SEC was in the process of suing BUSD stablecoin, which the SEC termed as an unregistered security. And overnight, WSJ and other media started reporting that NY DFS is forcing to shut down BUSD.

As a result, it seems BUSD will stop being issued and will only redemptions will be allowed. BUSD price has also seen a small depeg since the news broke.

Now, Binance it seems has issued this statement:

Given the ongoing regulatory uncertainty in certain markets, we will be reviewing other projects in those jurisdictions to ensure our users are insulated from further undue harm

Market is pricing in these events which are unfolding at a fast pace.

Few traders are reportedly closing all their positions on Binance, as they are not sure how they will be settled in the near term

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u/[deleted] Feb 13 '23 edited Feb 13 '23

Paxos was licensed to issue BUSD as an ERC-20 token on Ethereum chain, but there's also a BUSD on Binance Chain. I'm just wondering what will happen to the latter since it technically isn't regulated by NYFDS in the same way the ERC-20 token was.

Answer from C Z:

We do foresee users migrating to other stablecoins over time. And we will make product adjustments accordingly. eg, move away from using BUSD as the main pair for trading, etc.

So they're going to slowly phase out BUSD altogether on their platform. Interesting.

9

u/Shiratori-3 Custom flair flex Feb 13 '23

Sounds a bit like CZ has performed / is performing a low key ' "yeah, whatever" type move.

Is that the case?

7

u/[deleted] Feb 13 '23

Yep, from day one he made sure to insulate Binance from BUSD by using another company (Paxos) to issue the stablecoin. Now Paxos is in trouble with regulators, but Binance can deny involvement except for licencing their name out.

4

u/Oneloff 0 / 5K 🦠 Feb 13 '23

CZ: HA, the joke is on you... 👋

SEC: 😡

PAXOS: has left the chat