$500 million was withdrawn from the Binance exchange in an hour due to the ban on the BUSD stablecoin

The US authorities ordered to stop issuing the Binance BUSD stablecoin after recognizing it as an unregistered security.

The company responsible for the token, Paxos, will stop issuing new stablecoins from February 21, which have been created in cooperation with Binance since 2019. Since the release of the token, the crypto exchange has actively motivated users to choose it in their calculations

It is already known that the existing 16.5 billion tokens can be exchanged for USDP in a ratio of 1:1.

Against the background of negative news, Binance users transferred more than $500 million to other exchanges in just an hour. Approximately $439 million of them — on the Ethereum blockchain, another $ 102 million — on the Binance Smart Chain.

The branded token of the BNB crypto exchange dropped by 6% against the background of the news, Ethereum fell by 2.24%, pulling the rest of the altcoins with it. And the BUSD stablecoin, which caused Binance’s problems, is on the verge of losing its peg to the US dollar, trading around $ 0.98.