By Curtis Dye
Recently, the cryptocurrency exchange Coinbase proclaimed that it will stop trading Binance USD (BUSD) on its platform since the token doesn’t meet its listing standards. According to the reports, the incident is scheduled to take place on March 31 at about noon.
In addition, the digital currency exchange said that the conclusion was rooted in a recent analysis of the stablecoin, the issuance of which Paxos ceased after receiving an injunction from New York regulators.
Coinbase also clarified that holders of BUSD would retain access to their assets and be capable of transferring them as usual. Nevertheless, the exchange has notified that trading would be unavailable on Coinbase.com (including Basic and Advanced Trade), Coinbase Pro, Coinbase Exchange, and Coinbase Prime.
BUSD’s legal woes: SEC and NYDFS
In a story from earlier this month, Tokenhell noted that the SEC accused Paxos of breaking investor protection regulations when issuing Binance Dollar (BUSD). As per the regulatory body, this token, and several others in the cryptocurrency ecosystem are defined as a security.
Also read:As a result, the SEC issued a Wells notice to Paxos Inc., a document employed by the government to notify firms and people of future enforcement action. Nonetheless, the stablecoin issuer said that it unequivocally opposes the SEC’s classification but is engaged in constructive negotiations with the governing body.
In contrast, the crypto company severed connections with its long-time collaborator, crypto platform Binance, and ceased issuing BUSD due to legal litigation from the U.S. regulator.
What’s Next for BUSD
While Coinbase is the initial cryptocurrency exchange to delist and suspend trading of the Binance token, it may not be the last. Moreover, Changpeng CZ Zhao, CEO of cryptocurrency exchange Binance, believed that BUSD’s market valuation would drop over time.
In summary, BUSD’s price and trading volume will undoubtedly take a severe hit due to Coinbase’s decision to delist the currency. Coinbase is one of the most prominent crypto exchanges worldwide, with millions of users and billions of dollars in trading activity.
Further, removing BUSD from Coinbase may result in a drop in demand as traders seek out other stablecoins that are still accessible on the site.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.