In a recent announcement, Binance, the world’s leading cryptocurrency exchange, disclosed its intentions to remove Bitcoin (BTCUSD) and Ethereum (ETHUSD) cross-margin and isolated margin pairs. This strategic decision, set to take effect on November 28, is a part of Binance’s proactive approach to tackling increasing legal challenges within the digital assets sector.
The impacted pairs are directly linked to BUSD, a stablecoin created in collaboration with Paxos. The suspension of isolated margin borrowing on these pairs is scheduled for November 28, followed by the closure of auto-settled user positions and the cancellation of pending orders on December 7.
This move comes in response to heightened scrutiny, particularly from the U.S. SEC, which had previously classified BUSD as a security. Promptly addressing these concerns, both Paxos and Binance ceased the further creation and circulation of the stablecoin. This reflects the ongoing efforts of cryptocurrency exchanges to align with evolving regulatory frameworks.
In a concurrent development, Changpeng Zhao (CZ), the founder of Binance, has resigned from his position. This decision is part of a broader agreement with the U.S. Department of Justice to resolve criminal charges against the exchange. Richard Teng has been appointed as the new CEO during this transitional phase.
CZ’s admission of guilt earlier in the week, related to charges of operating an unlicensed money transfer business, conspiracy, and violating restrictions, has resulted in a substantial $4.3 billion fine for Binance. The market implications remain uncertain as the cryptocurrency space grapples with these regulatory challenges.
The delisting of significant pairs and the change in leadership at Binance underscore the increasing regulatory pressures cryptocurrency exchanges face, marking a pivotal moment for the industry.