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FDUSD became the fourth-largest stablecoin by market capitalization by being used almost exclusively as a trading pair on Binance.

Despite this, the stablecoin has remained relatively obscure due to its lack of other use cases. However, that might change soon. After partnering to issue FDUSD on Sui, the Hong Kong-based issuer has ambitious plans for its stablecoins future applications, its CEO told Blockworks.

FDUSDs story begins with a different stablecoin. Binance USD, or BUSD, was issued by US-based Paxos and used by Binance as its main stablecoin for trading pairs. After the Securities and Exchange Commission served a Wells notice in February 2023 and Paxos stopped minting BUSD, the worlds largest crypto exchange began hunting for a new primary stablecoin.

Read more: SEC triggers billion-dollar bank run on Binances BUSD

Binance became linked with a little-known stablecoin called TUSD, which saw its market capitalization surge after Binance listed a zero-fee bitcoin trading pair with TUSD. It also let users access its launchpool for new tokens using TUSD.

But for reasons that remain unclear, Binance cut TUSD off from zero-fee trading promotions and stopped including the stablecoin in its launch pools. A massive Binance driven sell-off caused TUSD to lose its peg in January.

TUSDs market capitalization has tumbled to around $500 million from a high of over $3.8 billion in October, according to CoinGecko.

Enter FDUSD, which was first issued by Hong Kong-based First Digital Labs in mid-2023. By August, Binance started encouraging users to convert their BUSD balances to FDUSD. Since then, FDUSD has taken the mantle formerly held by BUSD and briefly shared between FDUSD and TUSD. Today, Binance offers its zero-fee trading promotions and access to its new token launchpools with FDUSD.

First Digital didnt have a long stablecoin history before the Binance partnership. Roughly a year before it began issuing a stablecoin, First Digital Trust raised $20 million in Series A funding for digital asset custody from Nogle and Kenetic Capital in May 2022, according to an Asia-focused tech publication.

First Digital Trust spun up First Digital Labs in 2023 alongside FDUSDs debut. The stablecoin issuers second-ever X post was a response to Binance then-CEO Changpeng Zhao announcing FDUSDs launch.

First Digital signed a strategic commercial partnership with Binance to list FDUSD. Our company operates independently and [shares] no direct board or executive relationships, a spokesperson for First Digital told Blockworks.

Tech in Asia said First Digital was the digital asset arm of Hong Kong-based Legacy Trust Company. Vincent Chok is CEO of both Legacy Trust Company and First Digital Trust, according to LinkedIn.

Read more: Binance preps switch to little-used stablecoin, FDUSD

Today, FDUSDs trading markets are almost exclusively on Binance, per CoinGecko, with a large majority coming from trading pairs boosted by Binances zero maker and taker fee promotion. But First Digital Labs, the Hong Kong-based company behind FDUSD, is now looking to diversify.

Earlier this month, the layer-1 blockchain Sui announced FDUSD would become the networks first natively-issued stablecoin. First Digitals ambitions dont stop there, CEO Vincent Chok told Blockworks in an interview.

Everything does have an end, of course, Chok said of the Binance zero-fee promotion. I mean, thats another reason why I think we need to really create awareness around our stablecoin so that we can diversify into other exchanges.

Chok said First Digital is exploring partnerships to use FDUSD for cross-border payments, is in talks with layer-2s, and is targeting the launch of a payroll partnership with its stablecoin by the end of the year.

He added that First Digital is engaging with regulators in Hong Kong as the city nears the implementation of its long-awaited regime for stablecoin issuers.

Updated April 24, 2024 at 9:21 am ET: Added comment from First Digital regarding the companys relationship with Binance.

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Binance's main stablecoin is diversifying to other exchanges - Blockworks

In a mounting crisis for Binance CEO Richard Teng, regulators in the Philippines are working with tech giants Google and Apple to remove the crypto exchanges applications from their local app stores, the agency confirmed in a statement on April 23.

The move marks an escalation after the Securities and Exchange Commission blocked the website of the worlds largest cryptocurrency exchange at the end of March.

The SEC has identified [Binance] and concluded that the publics continued access to these websites/apps poses a threat to the security of the funds of investing Filipinos, SEC Chair Emilio B. Aquino said in the letters sent on April 19.

Aquino said the removal and blockade of Binance apps are essential steps to prevent the proliferation of illegal activities by the platform in the Philippines and to shield the investing public from its adverse effects on our economy.

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Binance media representatives did not respond to a request for comment by DL News.

The action comes as Teng struggles to revamp the freewheeling business model left by his predecessor, Changpeng Zhao, or CZ.

Zhao eschewed obtaining licences or registering with the regulators in markets where Binance operated.

Now that lack of compliance is backfiring in not only the Philippines but also in Nigeria, where the company has been charged with money laundering and tax evasion.

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Two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, have also been charged in Nigeria, and the former, who pleaded not guilty, is incarcerated in a prison pending trial.

The crackdown in Manila follows a November warning, when the SEC announced plans to block access to Binance due to it operating without a licence in the country.

The agency said that salesmen, brokers, and influencers promoting its services could face up to 21 years in prison and fines of $90,000.

The SEC also said it provided ample warning and opportunity for investors to withdraw from Binance and reallocate their funds to authorised investment platforms.

But a lack of clarity as to exactly when it would happen led to a rush of users trying to withdraw funds from the platform when the website block was implemented.

As a result, vendors on the Binance peer-to-peer marketplace offered Tethers USDT at a discount of 5 to 7% as they attempted to liquidate their holdings.

The SEC has not yet announced any actions against other international exchanges which continue to operate in the Philippines without the correct licences.

Got a story about crypto in Asia? Contact Callan Quinn at callan@dlnews.com.

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Apple and Google to boot Binance apps in the Philippines for 'posing a threat' to investors - DLNews

The Central Bank of Nigeria (CBN) has issued a new directive requiring all banks and financial institutions in the country to identify individuals or entities engaging in transactions with cryptocurrency exchanges.

The circular also requires the bank to place their accounts under a Post No Debit (PND) instruction for a period of six months.

Key points:

A PND instruction is a directive issued by a bank or financial institution that restricts certain transactions on a customers account. A PND instruction prohibits the account holder from making debit transactions.

Also read: Binance Founder Changpeng Zhao Should Face 3-Year Prison Sentence: DOJ

The CBNs decision to target unlicensed crypto exchanges comes as a surprise. This is because the bank lifted a comprehensive ban on banks engaging with digital currencies in December 2023.

The recent devaluation of the naira and the subsequent inflation rate of 29.9% appear to have prompted the government to shift its attention to platforms offering cryptocurrency services. The CBN has even blocked websites associated with crypto trading.

Also checkout:Crypto Industry Groups Sue SEC Over Expanded Dealer Definition

Binance is also facing ongoing scrutiny from the Nigerian government. The CBNs latest directive has raised questions about the future of cryptocurrency in Nigeria.

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Milk Road Writer

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Original post:

Central Bank of Nigeria To Freeze Bank Accounts Linked With Binance, Bybit, KuCoin - Milk Road

Binance burned 1.94 million Binance Coin tokens, removing them from circulation.

The cryptocurrency exchange Binance announced the completion of its 27th quarterly Binance Coin (BNB) token burn, removing $1.17 billion worth of coins from circulation. The volume of BNB destroyed was approximately 1.3% of the total supply of the asset.

However, this time, the procedure did not include burning tokens as part of the Pioneer Burn program.

The BNB tokens price failed to react to the news about the burning of tokens. According to CoinMarketCap, in 24 hours, the token lost 0.9% from its previous value, falling to $600 at the time of writing.

Over the past week, the tokens price rose by 13% despite recent news about the U.S. seeking to impose a three-year jail sentence onBinancefounder Changpeng Zhao.

BNBsmarket capitalization dropped by 2.2% to $88 billion, while trading volumes increased slightly by 1.4%.

Before this, Binance removed approximately 2.14 million BNB worth $636 million from circulation in January. The volume of BNB destroyed was approximately 1.38% of the total supply of the asset.

During the launch of BNB in 2017, a commitment was made to destroy 100 million coins half of the coins entire supply through burning. The offer is automatically executed every quarter and calculated using the auto-burn formula.

Binance representatives explained that this provides atransparent, auditable, and objective processindependent of the centralized exchange. In addition, BNB Chain continuously burns a portion of the gas fees on the blockchain in real-time.

Excerpt from:

Binance burns over $1.17b in BNB tokens - crypto.news

A recent recommendation by the U.S. Department of Justice [DOJ] for Changpeng Zhao, the founder of Binance has caused uproar in the market. CZ pleaded guilty to violating the Bank Secrecy Act last November. This further prompted his resignation as Binances chief executive. The exchange also admitted to the violations which resulted in a substantial penalty of $4.32 billion. Now, as Zhao faces sentencing on April 30, the DOJ was seen pushing for 36 months in prison alongside a $50 million fine.

JUST IN: US Government seeks 3 year prison sentence for ex-#Binance CEO Changpeng Zhao (CZ).

The severity of the recommended sentence is notable for several reasons. One of them is that federal sentencing guidelines typically cap the maximum prison term at 18 months for violations of this degree. However, the DOJ argues that Zhaos misconduct was not only willful but also had a wide range of ramifications. The latest filing read,

The sentence in this case will not just send a message to Zhao but also to the world. Zhao reaped vast rewards for his violation of U.S. law, and the price of that violation must be significant to effectively punish Zhao for his criminal acts and to deter others who are tempted to build fortunes and business empires by breaking U.S. law.

Also Read: Philippines SEC Orders Apple & Google To Remove Binance

While the DOJ puts forth the magnitude of Zhaos violations, several critics of the regulator have been highlighting CZs contributions to the industry. Binance, for instance, emerged as one of the largest and most influential exchanges across the globe. This was under CZs leadership.

In addition to his potential situation, Zhaos personal circumstances add complexity to the whole scenario. This includes his inability to return to Dubai where his family resides. The postponement of his sentencing hearing from late February to April 30 further prolongs the uncertainty around his fate.

Just last week, Binances co-founder He Yi instilled hope in the market by suggesting that CZs situation in the U.S. is perceived to be relatively stable. However, the looming prospect of a lengthy sentence casts a shadow over Binance and the entire cryptocurrency market.

Also Read: Binance $1 Billion Emergency Fund Converted to USDC

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Binance: DOJ Recommends 3-Year Sentence for CZ's Violations - Watcher Guru