- Binance USD (BUSD) trading will be suspended on four Coinbase platforms.
- The market cap of the stablecoin Binance USD (BUSD) declined 2.06% in the last 24h.
Crypto exchange Coinbase will disable the trading of Paxos-issued stablecoin Binance USD (BUSD) from March 13 around 12 PM ET. The exchange officially announced the delisting of Paxos-issued stablecoin on Monday on Twitter.
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
All BUSD-related trading will remain suspended for the exchange’s four major platforms – Coinbase.com, Coinbase Pro, Coinbase Exchange, and Coinbase Prime.
After “internal monitoring and review processes,” Coinbase pointed out the stablecoin BUSD’s inability to meet the exchange’s listing standards as the reason for suspending its trading. Binance USD will remain delisted but there is no pause to its withdrawals by the users.
Affirming this, Coinbase stated:
“Your BUSD funds will remain accessible to you, and you will continue to have the ability to withdraw your funds at any time.”
Binance USD (BUSD) in Turmoil
The regulatory scrutiny pushed BUSD to lead a turbulent phase in the crypto market. Firstly, the US Securities and Exchange Commission (SEC) issued the Wells notice alleging BUSD as an “unregistered security.” Following that, its issuer Paxos received stringent orders from the New York State Department of Financial Services (NYDFS) to stop the mint of new BUSD tokens. No new BUSD tokens were minted nor issued from February 13.
This critical phase along with mass burning eventually pulled down the third-largest stablecoin from the market cap-based top 10 cryptocurrencies. Parallely, Binance, the brand sponsor of the stablecoin, landed in massive withdrawals and controversies related to BUSD.
At press time, Binance USD (BUSD) registered a 2.98% drop in its market cap. Currently, $10.63 billion worth of BUSD is in circulation. According to CoinMarketCap, the stablecoin’s 24-hour rose by nearly 29%.