Coinbase to Suspend Trading of BUSD Amid Regulatory Crackdown

Cryptocurrency speech Coinbase announced it volition suspend trading and delist the Paxos-managed stablecoin plus BUSD. The determination follows Paxos’ revelation that the New York State Department of Financial Services directed the steadfast to halt issuing the U.S. dollar-pegged token BUSD.

Coinbase to Suspend BUSD Stablecoin connected March 13

On Feb. 27, 2023, Coinbase announced that it volition suspend trading of binance usd (BUSD) pursuing a caller regulatory crackdown connected the stablecoin by the New York State Department of Financial Services (NYDFS) connected February 13. Reports indicated that the U.S. Securities and Exchange Commission (SEC) sent Paxos a Wells Notice regarding BUSD connected that day. Paxos confirmed successful a property merchandise that the NYDFS directed the regulated steadfast to halt issuing the stablecoin.

“We regularly show the assets connected our speech to guarantee they conscionable our listing standards. Based connected our astir caller reviews, Coinbase volition suspend trading for [binance usd] (BUSD) connected March 13, 2023, connected oregon astir 12pm ET,” the institution said successful a tweet published connected Monday. “Trading volition beryllium suspended connected Coinbase.com (Simple and Advanced Trade), Coinbase Pro, Coinbase Exchange, and Coinbase Prime.”

Several crypto supporters commented connected Coinbase’s suspension of BUSD. “Will you suspend USDC erstwhile Gary comes for that too?” 1 idiosyncratic asked successful the thread. Others criticized Coinbase’s timing of the stablecoin suspension. “So astatine what constituent did BUSD abruptly neglect to conscionable your listing standards, and which modular specifically did it neglect to meet?” different idiosyncratic wrote successful effect to the Coinbase tweet. According to the stablecoin’s token declaration astatine property time, statistic amusement that 177,125 unsocial wallets clasp BUSD.

Currently, BUSD is the 11th largest cryptocurrency by valuation aft being removed from the apical 10 crypto assets by marketplace capitalization. Prior to Paxos’ announcement connected February 13, determination were 16.1 cardinal BUSD successful circulation. As of February 27, determination are 10.73 billion BUSD successful circulation aft 5.37 cardinal BUSD were removed from the fig of tokens. Binance’s reserve portfolio indicates that the speech holds 8.64 cardinal BUSD, which represents 80.52% of the full circulating supply.

What interaction bash you deliberation Coinbase’s suspension of BUSD volition have? Share your thoughts astir this taxable successful the comments conception below.

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