Coinbase, one of the world’s leading cryptocurrency exchanges, has officially suspends trading of Binance USD (BUSD) trading on its platform. The decision came after the stablecoin issuer, Paxos, ceased minting BUSD due to regulatory action by the New York Department of Financial Services.\
In a pair of tweets, Coinbase stated that the suspension would impact its Coinbase.com, Coinbase Pro, Coinbase Exchange, and Coinbase Prime platforms. However, BUSD token holders will still be able to access and withdraw their tokens at any time.
According to Coinbase, the decision to suspend trading for BUSD was based on the exchange’s internal monitoring and review processes. The exchange had previously announced its intention to delist BUSD in February, citing liquidity concerns.
Binance, the world’s largest cryptocurrency exchange by trading volumes, launched its native stablecoin Binance-USD in partnership with Paxos in 2019. Since then, BUSD has become one of the most widely used stablecoins among crypto investors, with over $16 billion in direct purchases.
However, the New York Department of Financial Services claimed that BUSD is an unregistered security, which could make it unsuitable for consumer protection. Paxos disagreed with this claim and planned to contest it in court. Nevertheless, crypto exchanges that keep BUSD listed on their platforms may be at risk of being sued and fined if the SEC wins its case and the court deems the stablecoin unregistered securities.
Meanwhile, Binance has abandoned BUSD in favor of TrueUSD. Binance has listed TrueUSD on its platform, and CEO Changpeng Zhao has advised users to migrate to other stablecoins over time.
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