WazirX follows Binance to convert stablecoins to BUSD

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Indian crypto exchange WazirX has decided to follow the example of Binance – the world’s largest cryptocurrency exchange by trading volume – and convert its holdings of Tether (USDT), Pax Dollar (USDP) and True USD (TUSD) stablecoins into a single asset.

WazirX crypto exchange users will not be able to deposit or withdraw USDT, USDP and TUSD stablecoins to the platform starting from September 23 at 14:30 UTC. Then, on September 26, 2022 at 00:00 UTC, the exchange will delist these stablecoins.

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After the delisting of WazirX converts all USDT, USDP and TUSD balances into Binance USD (BUSD) stablecoin. In this way, the platform wants to increase liquidity and capital efficiency for users. Clients who bought USDT, USDP, or TUSD prior to the announcement of the decision will not lose anything and will be able to withdraw the same amount of assets they purchased, but only in BUSD.

WazirX will also remove USDT, USDP and TUSD spot trading pairs.

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Previously, on September 6, 2022, Binance announced that it would be converting Circle (USDC), USDP, and TrueUSD to BUSD for similar reasons.

Links Binance and WazirX

In July 2022, Binance CEO Changpeng Zhao (or simply CZ) denied claims by WazirX CEO Nischal Shetty that Binance owns the Indian exchange. Shetty’s claim was based on a 2019 Binance post in which the exchange said it had “acquired” WazirX. But in fact, an agreement on the purchase of WazirX was never reached.

“Binance has never, at any time, owned any shares of Zanmai Labs, the entity behind WazirX,” CZ tweeted.

According to Zhao, Binance provides the infrastructure for the WazirX wallet, but the exchange is completely independent from Binance in areas such as the KYC process, trading, and withdrawals.

In August 2022, following an investigation by India’s Enforcement Directorate, CZ advised WazirX users to transfer funds held on the platform to Binance.

CEO Circle criticized BUSD

Binance completed the integration Binance USD (BUSD) on Avalanche and Polygon networks on September 19th. Users can now deposit, withdraw and transfer funds on four networks – Binance Smart Chain (BSC), EthereumAvalanche and Polygon.

It is also worth noting that Paxos Trust received permission from the New York City Department of Financial Services to work with BUSD and USDP. Other stablecoins have not yet been able to boast such success in terms of regulation.

At the same time, Circle CEO Jeremy Aller notedthat BUSD is of little use outside of the Binance platform and that news of the exchange’s decision to convert stablecoins was misinterpreted by the media. At that time, CZ confirmed that deposits and withdrawals in USDC were still available on the platform.

Coinglass data indicates that the majority of BUSD trading volume over the past 24 hours has come from the BSC network. At the time of publication of the article, BUSD has risen to the third largest stablecoin by market capitalization.

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Source: Cryptocurrency

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