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US cryptocurrency exchange Coinbase has announced that it will be suspending the trade of BUSD (Binance USD) on March 13.
“Our determination to suspend trading for BUSD is based on our own internal monitoring and review processes,” a Coinbase spokesperson told crypto publication Decrypt. “When reviewing BUSD, we determined that it no longer met our listing standards and will be suspended.”
In a tweet on Tuesday, Coinbase said that users will still be able to access and withdraw their BUSD after the suspension. The Binance-branded cryptocurrency, which was issued by crypto broker Paxos, is currently the third largest stablecoin with a US$10.6 billion market capitalisation, according to data from CoinMarketCap.
Trading will be suspended on https://t.co/Zkd27RUMRo (Simple and Advanced Trade), Coinbase Pro, Coinbase Exchange, and Coinbase Prime.
— Coinbase Assets (@CoinbaseAssets) February 27, 2023
Your BUSD funds will remain accessible to you, and you will continue to have the ability to withdraw your funds at any time.
Cutting Ties
Last week, Paxos officially ended its relationship with Binance, following scrutiny from US authorities.
Charles Cascarilla, Paxos CEO, made the announcement last Tuesday, citing the partnership as a divergence from its "strategic priorities."
“The market has evolved and the Binance relationship no longer aligns with our current strategic priorities,” Cascarilla said in an internal email.
Cascarilla claimed the decision was unrelated to pressure from the New York Department of Financial Services (NYDFS) and the Securities Exchange Commission (SEC), which have recently pried into Paxos's relationship with the exchange.
Earlier this month, the SEC announced that it is planning to sue Paxos, the issuer of BUSD, for violating investor protection laws. The financial watchdog is also alleging that BUSD is an unregistered security
According to the Wall Street Journal, which cited people familiar with the matter, the SEC's enforcement staff already issued a Wells notice to Paxos, which the SEC uses to inform companies and individuals of possible enforcement action.
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