Coinbase has announced that it will suspend trading of Binance USD (BUSD) due to concerns raised by regulators about Binance operations.
Coinbase, the leading US cryptocurrency exchange, has Announced to suspend trading of Binance USD (BUSD), a stablecoin issued by Binance, the number one global crypto exchange. The suspension takes effect on March 13 and will affect all BUSD trading pairs on the Coinbase platform.
Coinbase’s decision to suspend BUSD trading follows recent concerns raised by regulators about Binance’s operations, which have resulted in several countries cracking down on the exchange. Concerns have been raised about Binance’s compliance and cooperation with anti-money laundering (AML) and know-your-customer (KYC) regulations.
Coinbase’s move is very important as BUSD is one of the largest stablecoins on the market, with a market capitalization of over $11 billion. Stablecoins are cryptocurrencies that are created to hold a stable value, usually pegged to a fiat currency like the US dollar.
Following regulatory action by the Securities and Exchange Commission (SEC), Paxos, the entity responsible for issuing BUSD, ceased production of the stablecoin.
The suspension of BUSD trading on Coinbase may affect liquidity and demand for the stablecoin. However, it is important to note that BUSD can still be traded and available on other exchanges.
This development shows the increasing regulatory scrutiny facing the cryptocurrency industry. As the industry continues to grow and mature, regulators are increasingly focused on ensuring that companies operating in the space comply with existing laws and regulations.
Companies that fail to do so risk facing significant regulatory and legal consequences.
