Cypher
CryptocurrencyNews

Binance USD Falls Short of Coinbase’s Listing Norms

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

Cypher

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:  Crypto Exchange Bitget Appoints Gracy Chen CEO

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. 

📰 Also read:  Ethereum Rally Imminent as SEC Approves Rule Change to Enable Spot Ether ETFs Creation

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.


Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.

📰 Also read:  Trump Continues to Back Cryptocurrency Industry, Supports Silk Road Convict

Cypher

Curtis Dye

Curtis is a cryptocurrency news and analytics author with a focus on DeFi, BLockchain, CeFi, NFTs etc. He has publication skills such as SEO optimization, Wordpress, Surfer tools and aids his viewers with insights on the volatile crypto industry.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Skip to content