Changpeng Zhao issues a lengthy Twitter thread commenting on the latest BUSD-related news.
Changpeng “CZ” Zhao, a co-founder and chief executive officer (CEO) of cryptocurrency exchange Binance, revealed that the firm will continue to support Binance USD (BUSD) “for the foreseeable future.”
According to the Twitter thread shared on February 13th, Zhao noted that the company understands that in the future, users will migrate “to other stablecoins over time” and will “make product adjustments accordingly.”
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Binance CEO noted that the stablecoin issuer informed Binance that the New York Department of Financial Services instructed Paxos to cease the issuance of Binance USD (BUSD). Therefore, CZ highlighted that inevitably, “BUSD market cap will only decrease over time.”
On top of that, Changpeng Zhao claims that Binance received reassurance from Paxos that funds are safe and fully “covered by reserves in their banks, with their reserves audited many times by various audit firms already.”
Binance's CEO also commented on the rumors about US Securities and Exchange Commission's lawsuit. Changpeng Zhao claims he has “no information” about the matter except for the news circulating in the public news articles.
However, CZ believes that if US authorities determine that BUSD is indeed security, “it will have a profound impact on how the crypto industry will develop (or not develop) in the jurisdictions where it is ruled as such.”
At the end of its Twitter thread, the head of Binance noted:
Given the ongoing regulatory uncertainty in certain markets, we will be reviewing other projects in those jurisdictions to ensure our users are insulated from any undue harm.
Chanpeng Zhao’s comments come hours after the news broke that the New York financial regulator ordered Paxos to stop issuing Binance USD (BUSD). Following the news, Paxos issued a press release revealing that it will stop its partnership with Binance and cease the issuance of new BUSD tokens on February 21st.
