Coinbase, a cryptocurrency exchange based in the US, has revealed that it will halt the trading of Binance USD (BUSD) in mid-March citing “listing standards.” The company conveyed this news on Twitter.
Coinbase’s move to suspend BUSD trading follows a recent development where the US Securities and Exchange Commission (SEC) sent a wells notice to Paxos Trust, indicating that the BUSD is a security. As a result, the New York Department of Financial Services (NYDFS) ordered Paxos to cease BUSD issuance, which it promptly complied with.
Initially, Binance had refuted claims that BUSD was a security and had expressed its readiness to defend its position in court. However, it is uncertain what the future holds for BUSD, particularly after Binance’s recent issuance of 50 million True USD stablecoins. Coinbase has announced that it will cease BUSD trading on March 13 at approximately 12 PM ET, as per their communication.
Coinbase’s decision to halt BUSD trading will affect Coinbase Pro, Coinbase Prime, Coinbase Exchange, as well as the basic and advanced versions of Coinbase.com. However, during this period, users can still access their BUSD tokens and withdraw them.
To be listed on Coinbase, a digital asset has to go through a voting process by the digital asset listing group, which follows a thorough vetting and review procedure. This assessment examines the legality of the asset and whether it complies with technical security standards. Furthermore, there are additional business evaluations and constant monitoring to ensure that the cryptocurrency maintains compliance with the established criteria.
