Coinbase to suspend trading of Binance USD (BUSD)

From March 13, 2023, Coinbase will suspend trading of the Binance USD (BUSD) 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.

— Coinbase Assets (@CoinbaseAssets) February 27, 2023

We regularly monitor the assets on our exchange to ensure that they meet listing standards. Based on our most recent reviews, Coinbase will suspend trading for Binance USD (BUSD) on March 13, 2023, around 12:00 (ET), the statement said.

According to CoinMarketCap, BUSD’s market capitalization has fallen to $10.7 billion (-$5.4 billion since February 13). At the time of writing, the asset sits in 10th place in the ranking.

Earlier, the lending protocol Aave decided to consider a proposal to suspend the use of BUSD as collateral.

This came after the New York State Department of Financial Services (NYDFS) initiated an investigation into the issuer of Binance USD, Paxos.

Subsequently, its representatives said they would stop issuing new coins in line with regulator requirements and sever ties with Binance regarding the stablecoin. The firm will continue supporting buyback and conversion operations through at least February 2024.

It was also learned that threats by the SEC to sue Paxos over securities-law violations in the issuance of BUSD were reported.

According to Bloomberg, in 2022 Circle filed a complaint with the NYDFS regarding the quality of reserve management for the stablecoin.

In February, Binance CEO Changpeng Zhao forecasted an expansion in the number of non-dollar stablecoins.