The US crypto exchange Coinbase will no longer allow trading of Binance USD (BUSD) as of March 13.
Indeed, on Monday, on Twitter, Coinbase announced:
We regularly monitor assets on our exchange to ensure they meet our listing standards. Based on our most recent analysis, Coinbase will suspend trading of Binance USD (BUSD) on March 13, 2023″.
Coinbase did not give a specific reason regarding this decision to stop trading the BUSD which has been in place since April 2022. The crypto trading platform simply states that this stablecoin no longer meets its listing standards.
Coinbase certainly intends to protect itself from any legal attacks if the SEC regulator were to rule that the BUSD token is a financial security, and not just a crypto trading token.
Trading will be suspended on Coinbase.com (Simple and Advanced Trading), Coinbase Pro, Coinbase Exchange and Coinbase Prime.
Your BUSD funds will remain accessible and you will continue to have the ability to withdraw your funds at any time.
Coinbase’s decision comes on the heels of worries faced by Paxos, the issuer of BUSD stablecoin for Binance, which has been forced by the New York Department of Financial Services (NYDFS) to stop issuing BUSD stablecoin.
Paxos is also threatened with legal action from the US regulator Securities and Exchange Commission (SEC), click here to read our article.
Since then, the market capitalization of stablecoin has melted to about $10 billion from $16 billion before the regulators’ ban.
The announcement of Coinbase’s BUSD delisting has negatively impacted the Bitcoin (BTC) price, which has dropped to $23150.
