Binance, recognised globally as the largest cryptocurrency exchange based on trading volume, has made a significant announcement. The exchange has expanded its offering by listing two new trading pairs on its platform: BCH/TUSD and CFX/TUSD. This development holds particular relevance for the South African cryptocurrency trading community, given the increasing interest and investment in digital currencies within the country.
The introduction of these pairs opens up the potential for users to execute trades between Bitcoin Cash (BCH) and Conflux Network (CFX) with TrueUSD (TUSD). TUSD is a regulated stablecoin that maintains parity with the US dollar. Binance has set the launch time for trading with the BCH/TUSD and CFX/TUSD pairs at 11:00 Central European Summer Time (CEST) on 30 June 2023. Additionally, Binance users will enjoy the advantage of zero maker fees on these trading pairs until further notice.
This move follows Binance’s earlier foray into stablecoin territory. Back in 2019, Binance joined forces with Paxos to introduce its own branded stablecoin, Binance USD (BUSD). The BUSD is also tied to the value of the US dollar and has received approval from the New York Department of Financial Services (NYDFS).
Nevertheless, the partnership between Binance and Paxos has faced some hurdles. The US Securities and Exchange Commission (SEC) served Paxos with a Wells notice, traditionally used to inform companies that they are the subject of an enforcement action. The notice alleged that BUSD was an unregistered security, an accusation that Paxos has denied, arguing that BUSD does not fit the classification of a security under either the Howey test or the Reves test.
Post the SEC’s notification, the NYDFS ordered Paxos to halt the issuance of new BUSD tokens. The directive cited unresolved issues concerning Paxos’ supervision of its relationship with Binance pertaining to BUSD.
In the wake of this regulatory scrutiny, the popularity of the BUSD token has waned amongst the cryptocurrency user base, with traders shifting to other stablecoins such as USDT and USDC. This shift in stablecoin preference presents potential implications for South Africa’s growing number of cryptocurrency traders, as they continue to navigate the ever-evolving landscape of digital currency trading.