Breaking: Coinbase To Suspend Binance’s BUSD After Internal Review

Coinbase News:  In a recent turn of events, Coinbase Global Inc., the largest crypto exchange in the United States, announced that it would be suspending the trading of Binance’s native stablecoin, BUSD, as a result of an internal investigation. This comes after the New York Department of Financial Services (NYDFS) recently imposed strict regulations on Paxos, the company that issues BUSD, ordering them to halt creating more of Binance’s dollar-pegged stablecoin. As a result, Binance is now subjected to numerous regulatory challenges in the nation.

Coinbase Stops BUSD Trading

In a recent tweet, Coinbase publicly stated that they periodically monitor the assets on the exchange to ensure they fulfill their listing standards. As a result of this assessment as well as subsequent reviews, the exchange has therefore come to the conclusion of suspending the trade of the Binance-issued stablecoin BUSD.

Read More: Check Out The Top 10 DeFi Lending Platforms Of 2023

According to Coinbase, trading will be halted on all platforms, including Coinbase Pro, Coinbase Exchange, and Coinbase Prime, across all levels of trading, including simple and advanced. Nonetheless, access to the funds held by customers will be maintained, and they will be able to make withdrawals whenever they choose. The precise time of the suspension will take place on March 13, 2023, at or near twelve o’clock in the afternoon Eastern Time (ET).

War Of The Stablecoins

The decision from the New York financial regulator was issued after the U.S. Securities and Exchange Commission (SEC) issued a Wells Notice against Paxos, asserting that the company’s Binance USD (BUSD) is an unregistered security. A “Wells Notice” is a letter that the SEC delivers to individuals or companies when it is considering taking legal action against them.

However, many speculate that Circle, the creator of the USDC stablecoin, provided the tip-off to the U.S. authority. This comes after Binance purportedly discontinued its support for USDC and instead began automatically converting the cryptocurrency into BUSD before the end of 2022. As a direct consequence of this action, the company’s once-dominant share of the stablecoin market was largely impacted. Coinbase worked with Circle in issuing the USDC stablecoin and is one of its founding members.

At the time of writing, BUSD’s price remained pegged to its one-dollar value at $10.7 billion market cap.

Also Read: New AI Product Sparks Optimism For Hedera; Is HBAR Price Eyeing $1?