India-based cryptocurrency exchange WazirX follows Binance’s altcoin delist policy. Just like Binance, WazirX will implement 1:1 automatic conversion of BUSD across 3 stablecoins in October.
WazirX implemented Binance’s delist decision for these altcoin projects
Indian exchange WazirX has chosen to remove USD Coin (USDC) from its platform and convert remaining balances to BUSD. Officially on Monday, Pax announced that it is stopping USDC deposits along with other stablecoins such as the dollar (USDP) and TrueUSD (TUSD). According to the announcement, the exchange will offer the BUSD stablecoin to increase liquidity and efficiency for users. The firm said that WazirX will implement automatic 1:1 BUSD conversion for users’ existing USDC, USDP and TUSD balances on Oct.
https://twitter.com/WazirXIndia/status/1571799125875736576
According to WazirX’s announcement from its official website:
Users will be able to see their USDC, USDP and TUSD balances under their BUSD account balance once the conversion is complete.
USDC, USDP and TUSD withdrawals will remain valid on WazirX until Friday. The platform then plans to remove stablecoins from spot trading pairs on September 26.
How much will the decision affect stablecoins?
According to data from CoinGecko, WazirX was trading insignificant amounts of USDC prior to the announcement. Currently, the only USDC pair listed on WazirX is USDC against Tether (USDT) with $3,400 in daily volumes. In contrast, BUSD has two trading pairs traded on WazirX against USDT and the Indian rupee. Their daily trading volumes are $5,700 and $5,200 respectively.
Backed by Circle and Coinbase, USDC is the second largest stablecoin by market capitalization after USDT. At the time of writing, USDC’s market cap has dropped to $50 billion. It lagged behind rival stablecoin USDT at $17 billion in market cap. Binance USD, the third largest stablecoin, has a market cap of $20.6 billion, according to CoinGecko.
WazirX’s USDC delisting decision came shortly after Binance’s decision. Binance announced on September 5 that it will automatically convert USDC, USDP and TrueUSD balances to BUSD stablecoins. Meanwhile, in August, Binance denied owning any stake in WazirX after the Indian crypto exchange came under regulatory scrutiny. India’s Enforcement Directorate previously froze more than $8.1 million in funds in WazirX as part of an Anti-Money Laundering investigation against the firm. Claims of the Executive Directorate of India or ED about WazirX:
WazirX cannot provide any accounts for missing cryptocurrencies. It has made no effort to track these cryptocurrencies. By promoting uncertainty and having lax AML norms, he actively assisted nearly 16 accused fintech companies in money laundering using the crypto route.
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