Binance USD (BUSD), a stablecoin issued by Paxos, won’t be able to be traded on the cryptocurrency exchange Coinbase starting on March 13 at noon. In short, Coibase will delist BUSD.
Coinbase Will Delist BUSD
On Monday, the exchange made the delisting of the stablecoin created by Paxos official on Twitter.
For the exchange’s four main platforms—Coinbase.com, Coinbase Pro, Coinbase Exchange, and Coinbase Prime—all BUSD-related trade will continue to be suspended. After conducting internal monitoring and review procedures, Coinbase stated that the stablecoin BUSD’s suspension of trading was due to its inability to meet the exchange’s listing requirements. However, there will be no halt to user withdrawals from Binance USD even after it is delisted.
Chaos for Binance USD (BUSD)
The regulatory attention caused BUSD to take the lead in a volatile period in the cryptocurrency market. First of all, the US Securities and Exchange Commission (SEC) declared BUSD to be an “unregistered security” in the Wells notice.
Following that, the New York State Department of Financial Services (NYDFS) issued strict instructions to its issuer Paxos to halt the creation of new BUSD tokens. As of February 13, no novel BUSD tokens were minted or distributed.
The third-largest stablecoin was eventually removed from the top 10 cryptocurrencies ranked by market cap as a result of this crucial stage and mass burning. In parallel, Binance, the stablecoin’s brand sponsor, was embroiled in disputes over BUSD and large withdrawals.