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BUSD Trading on Coinbase to Halt On This Date: Here’s Why

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Coinbase, one of the world’s largest crypto exchanges, has decided to delist the Binance USD (BUSD) stablecoin starting March 13. The decision comes in the backdrop of the BUSD token facing legal challenges in the US. Paxos, the stablecoin issuer that wholly owned and managed the Binance USD stablecoin is facing a lawsuit from the Securities and Exchange Commission in the US. Paxos has been accused of issuing the BUSD token as an unregistered security, Paxos meanwhile, has denied the allegation.

“We’ve determined that BUSD does not currently meet our standards for trading support,” a Coinbase spokesperson reportedly said, not elaborating on the details.

Launched in 2019, the BUSD stablecoin built on the Ethereum blockchain, currently has a market valuation of over $10 billion (roughly Rs. 87,987 crore). As per CoinMarketCap, the market cap for BUSD dropped by three percent in the last 24 hours.

At the time of writing, each BUSD was trading at $1 (roughly Rs. 82), showed the crypto price tracker by Gadgets 360.

Coinbase claims on its website that its digital asset listings group has a vote to get any cryptocurrency listed or delisted.

Assets are regularly analysed on the basis of their legal status, technical security quotient as well as compliance with the laws, violations of which could get assets delisted from Coinbase.

The decision will be executed across Coinbase’s suite of services including, Coinbase Pro, Coinbase Prime, as well as Coinbase Exchange.

Meanwhile, Coinbase will continue to allow its users to access and withdraw their BUSD funds despite its decision to delist the token. Users, however, will not be able to trade the token on Coinbase after March 13.

BUSD issuer Paxos was served a notice by the New York State Department of Financial Services earlier in February. The financial authority has instructed Paxos to stop issuing BUSD tokens.

Soon after the news broke, Coinbase had noted that stablecoins are not considered as securities in the US.

Pegged against a fiat currency like the US dollar or reserved assets like gold, stablecoins are crypto assets that latch their values to their underlaying assets.

This prevents stablecoins against fluctuations in the volatile crypto industry as compared to other assets.

Tether, USD Coin, and Ripple are among other popular stablecoins pegged against the US dollar just like the BUSD.

After facing headwinds in India last year, Xiaomi is all set to take on the competition in 2023. What are the company’s plans for its wide product portfolio and its Make in India commitment in the country? We discuss this and more on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by String Reveals. String Reveals shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article. 

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