Binance-branded stablecoin BUSD is going through tough times after restrictive decisions from US regulators. A new statement about the stablecoin moving away from the top 10 came from Binance CSO Patrick Hillmann.
Binance CSO confirms they will be heading to different markets
As you follow on Kriptokoin.com, the New York Department of Financial Services ordered Paxos, the company authorized to print BUSD, to stop issuing Binance USD at the beginning of the week. NYDFS said it has stopped issuing stablecoins due to several unresolved issues with Paxos overseeing its relationship with Binance. Paxos said it terminated its relationship with Binance for BUSD shortly after the order.
Above the development, BUSD lost its dollar stability. CEO CZ tweeted that altcoin investors are starting to move on to other stablecoins. Amid the intense Fud news, rumors surfaced that Binance would cease all operations in the US. Binance CSO Patrick Hillmann, in his new statements, says that even in such a situation, Binance can cooperate with a large number of European and Middle Eastern partners.
“BUSD’s days are numbered”
“BUSD’s days are numbered,” Hillman told Forbes on February 18. “People will not want to buy more BUSD because they will not be sure how to make the refund,” the CSO says. The executive says that Binance-peg BUSD, a derivative of BUSD originally created by Binance for blockchains other than Ethereum, is also likely to slow down:
Besides Ethereum users, there will be no users on any chain who will want to trade BUSD for much longer.
Patrick Hillmann confirms Binance is not US banking partner
As US regulators put pressure on cryptocurrencies on a number of fronts, the exchange appears to be rapidly severing ties with the US. Last month, the exchange announced that its US-based banking partner, Signature Bank, will no longer process dollar-denominated transactions for individuals under $100,000. Hillman confirmed that the exchange does not currently have a US banking partner.
The executive still says they can forge new stablecoin partnerships in Europe and the Middle East, markets as big as the US. “There are very interesting opportunities, especially in Europe and the Middle East,” he told Forbes. He did not provide any details about potential business partnerships.
With the impending demise of BinanceUSD (BUSD), Patrick Hillmann expressed interest in working with the world’s largest cryptocurrency exchange on a similar initiative, with many private and public institutions. On February 15, the exchange reported that it expects financial penalties from U.S. officials due to previous compliance concerns.
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