Coinbase suspends trading of BUSD

Cryptocurrency exchange Coinbase has announced that it will suspend trading and delist the Paxos-managed stablecoin asset BUSD. The decision comes after Paxos revealed that the New York State Department of Financial Services had ordered the firm to stop issuing BUSD tokens pegged to the US dollar.

Coinbase will suspend BUSD stablecoin on March 13

On February 27, 2023, Coinbase announced that it would suspend trading of binance usd (BUSD) following the recent regulatory crackdown on the stablecoin by the New York State Department of Financial Services (NYDFS) on February 13. Reports indicate that the US Securities and Exchange Commission (SEC) sent Paxos a notice to Wells regarding BUSD that day. Paxos confirmed in a press release that the NYDFS ordered the regulated firm to stop issuing the stablecoin.

“We regularly monitor assets on our exchange to ensure they meet our listing standards. According to our latest checks, Coinbase will suspend trading of [binance usd] (BUSD) on March 13, 2023 at approximately 12:00 PM ET,” the company said in a tweet posted on Monday. "Trading will be suspended on Coinbase.com (simple and advanced trading), Coinbase Pro, Coinbase Exchange and Coinbase Prime."

Several cryptocurrency advocates have commented on the Coinbase BUSD suspension. "Will you suspend the USDC when Gary comes for it too?" asked one user in the thread. Others criticized Coinbase for the timing of the stablecoin suspension. "So at what point did BUSD suddenly fail your listing standards, and exactly what standard did it fail?" another person wrote in response to Coinbase's tweet. According to the stablecoin contract at the time of publication, statistics show that 177,125 unique wallets contain BUSD.

BUSD is now the 11th largest cryptocurrency by valuation after being dropped from the top 10 cryptocurrencies by market cap. Prior to the announcement, Paxos had $16.1 billion in outstanding balance on February 13. As of February 27, there were 10.73 billion BUSD in circulation after 5.37 billion BUSD were withdrawn from the tokens. Binance's reserve portfolio indicates that the exchange holds $8.64 billion, which is 80.52% of the total circulation.

Author: GEximius