Coinbase to suspend BUSD trading due to regulatory crackdown
Coinbase, the second-biggest crypto exchange by trading volume, announced the suspension of BUSD trading. The exchange has also delisted the Paxos-backed stablecoin from the platform.
Paxos recently received an ultimatum from the NYDFS (New York State Department of Financial Services.) The instructions stated that the firm had to stop the issuance of BUSD in the region.
As for the latest development, Coinbase released an official tweet to inform users. The tweet mentioned that Coinbase closely monitors every asset on the exchange to make sure they are meeting the required standards.
Thus, based on recent reviews, the exchange has decided to stop trading Binance USD from March 13. The suspension will be carried out around 12 PM ET on Coinbase Exchange, Coinbase Prime, Coinbase.com, and Coinbase Pro.
Given the gravity of the situation, the majority of the crypto community started following the updates. Many of them even searched for a review on Coinbase exchange to see how the exchange generally operates and conducts tests.
Since BUSD is a popular stablecoin, the community also threw shade at Coinbase’s decision. Some asked whether Coinbase would suspend USDC if Gary came after the token. Some other users asked Coinbase to specify why BUSD failed to meet the standards all of a sudden.
During the announcement, Coinbase had over 177K wallets that possessed BUSD. With 16 billion BUSD in circulation, the stablecoin becomes the 11th biggest crypto in valuation. Binance also holds over 8 billion BUSD, representing more than 80% of the entire supply.
Now that Coinbase has let go of the stablecoin, everyone is keenly awaiting Binance’s response to the situation.