Cryptocurrency exchange Coinbase announced that it will suspend trading and delist the BUSD stablecoin asset managed by Paxos. The decision follows Paxos’ revelation that the New York State Department of Financial Services ordered the company to stop issuing the US dollar-pegged BUSD token.
Coinbase to Suspend BUSD Stablecoin on March 13
On February 27, 2023, Coinbase announced that it will suspend trading of binance usd (BUSD) following a recent regulatory crackdown on the stablecoin by the New York State Department of Financial Services (NYDFS) on February 13. Reports indicated that the US Securities and Exchange Commission (SEC) sent Paxos a Wells Notice on BUSD that day. Paxos confirmed in a press release that the regulated firm was ordered by the NYDFS to stop issuing the stablecoin.
“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 of (binance usd) (BUSD) on March 13, 2023, around 12 pm ET,” the company said in a statement. cheep posted on monday. “Trading will be discontinued on Coinbase.com (simple and advanced trading), Coinbase Pro, Coinbase Exchange, and Coinbase Prime.”
Several cryptocurrency supporters commented on Coinbase’s suspension of BUSD. “Will you suspend USDC when Gary comes over for that too?” a person asked in the thread Others criticized Coinbase’s timing of the stablecoin suspension. “So at what point did BUSD suddenly fail to meet its listing standards, and what standard specifically did it fail to meet?” another person wrote in response to Coinbase’s tweet. According to the stablecoin token contract at press time, statistics show that 177,125 unique wallets hold BUSD.
Currently, BUSD is the 11th largest cryptocurrency by valuation after being knocked out of the top ten crypto assets by market capitalization. Prior to the Paxos announcement on February 13, there were 16.1 billion BUSD in circulation. As of February 27 there is 10.73 billion BUSD in circulation after 5.37 billion BUSD of token stock was removed. Binance’s reserve portfolio indicates that the exchange holds 8.64 billion BUSD, representing 80.52% of all circulating supply.
What impact do you think Coinbase’s suspension of BUSD will have? Share your thoughts on this topic in the comments section below.
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