- Binance USD has been under scrutiny by the US SEC which claims that it is a security.
- NYDFS recently ordered Paxos to stop issuing BUSD.
- Paxos also went ahead to terminate its relationship with Binance.
US-based cryptocurrency exchange Coinbase has announced that it will suspend Binance USD (BUSD) trading in mid-March. The announcement, which was made via Twitter, mentioned “listing standards.”
We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent reviews, Coinbase will suspend trading for Binance USD (BUSD) on March 13, 2023, on or around 12pm ET.
– Coinbase Assets (@CoinbaseAssets) February 27, 2023
Coinbase’s decision to suspend BUSD trading comes two weeks after the US Securities and Exchanges Commission (SEC) issued Paxos Trust with a wells notice for issuing a security, the BUSD. SEC’s notice triggered a number of other repercussions including the New York Department of Financial Services (NYDFS) ordering Paxos to halt BUSD issuance which Paxos immediately obeyed.
While Binance had initially stated that BUSD was not a security and that it was ready to defend that stand in court, it is not clear what the future of BUSD is especially after Binance recently minted 50 million True USD stablecoins.
BUSD to be suspended on all Coinbase apps
According to the communication, Coinbase will suspend BUSD trading on March 13 starting at around 12PM ET.
The suspension will apply to Coinbase Pro, Coinbase Prime, Coinbase Exchange, and the simple and advanced versions of Coinbase .com. In the meantime, users will have access to their BUSD tokens and they can withdraw them.
The exchange said:
“Your BUSD funds will remain accessible to you, and you will continue to have the ability to withdraw your funds at any time.”
For any digital asset to be listed on Coinbase, it has to be voted for by the digital asset listing group. The voting process is informed by a rigorous vetting/review process that evaluates whether the assets are legal and comply with the technical security standards. There are also additional business assessments and continuous monitoring to ensure that the cryptocurrency continues to meet the set standards.