In a recent move, Coinbase announced that it will be suspending trading of Binance USD (BUSD) on March 13 at approximately noon EST. The decision comes after the exchange conducted a review of the stablecoin, which Paxos stopped issuing in response to a directive from a New York regulator.
“Our determination to suspend trading for BUSD is based on our own internal monitoring and review processes,” a Coinbase spokesperson told The Block. “When reviewing BUSD, we determined that it no longer met our listing standards and will be suspended.”
BUSD Fund Withdrawals Still Available, Trading Suspended
Although customers will still have access to and be able to withdraw BUSD funds, they will no longer be able to trade the stablecoin on Coinbase.com (Simple and Advanced Trade), Coinbase Pro, Coinbase Exchange, and Coinbase Prime, according to the exchange’s official statement.
Paxos Faces Regulatory Scrutiny, Severs Ties with Binance
This latest development follows Paxos receiving a Wells notice from the U.S. Securities and Exchange Commission (SEC) earlier this month, alleging that it listed BUSD as an unregistered security. While Paxos has stated that it “categorically disagrees” with the SEC’s categorization, the stablecoin issuer is reportedly in “constructive discussions” with the regulator. Additionally, Paxos has cut ties with Binance in the wake of the regulatory scrutiny.
As Coinbase’s decision to suspend BUSD trading takes effect, the crypto community will be watching closely to see how this development impacts the broader ecosystem. For now, Coinbase’s adherence to its own listing standards highlights the growing importance of regulatory compliance within the cryptocurrency industry.
Source: The Block
