Cryptocurrency exchange Coinbase announced it will suspend trading and delist the Paxos-managed stablecoin asset BUSD. The decision follows Paxos’ revelation that the New York State Department of Financial Services directed the firm to stop issuing the U.S. dollar-pegged token BUSD.
Coinbase to Suspend BUSD Stablecoin on March 13
On Feb. 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 U.S. Securities and Exchange Commission (SEC) sent Paxos a Wells Notice regarding BUSD on that day. Paxos confirmed in a press release that the NYDFS directed the regulated firm 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 for [binance usd] (BUSD) on March 13, 2023, on or around 12pm ET,” the company said in a tweet published on Monday. “Trading will be suspended on Coinbase.com (Simple and Advanced Trade), Coinbase Pro, Coinbase Exchange, and Coinbase Prime.”
Several crypto supporters commented on Coinbase’s suspension of BUSD. “Will you suspend USDC when Gary comes for that too?” one person asked in the thread. Others criticized Coinbase’s timing of the stablecoin suspension. “So at what point did BUSD suddenly fail to meet your listing standards, and which standard specifically did it fail to meet?” another person wrote in response to the Coinbase tweet. According to the stablecoin’s 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 removed from the top ten crypto assets by market capitalization. Prior to Paxos’ announcement on February 13, there were 16.1 billion BUSD in circulation. As of February 27, there are 10.73 billion BUSD in circulation after 5.37 billion BUSD were removed from the number of tokens. Binance’s reserve portfolio indicates that the exchange holds 8.64 billion BUSD, which represents 80.52% of the entire circulating supply.
Tags in this story
Binance, BUSD, BUSD Coinbase, circulating supply, Coinbase, Coinbase BUSD, Crypto Supporters, Cryptocurrency Exchange, cryptocurrency market, Delist, delisting, Impact, listing standards, March 13, Market Capitalization, NYDFS, Paxos, regulatory crackdown, reserve portfolio, SEC, Stablecoin, suspension, timing, token contract, Trade Suspension, trading, USDC, valuation, Value, Wallets, wells notice, wider market
What impact do you think Coinbase’s suspension of BUSD will have? Share your thoughts about this subject in the comments section below.
Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
More Popular News
In Case You Missed It
NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales
Non-fungible token (NFT) sales saw a small uptick over the last week as $658.4 million in NFT sales were recorded, up 3.35% in seven days. Out of 15 blockchains, Polygon-based NFT sales saw the largest increase in volume, jumping 106.68% … read more.
