A Coinbase representative stated that the suspension of BUSD trading will begin on March 13 because it was determined that BUSD no longer met their listing standards.
On February 27, the exchange tweeted that Coinbase would stop trading the Binance USD BUSD stablecoin on March 13. Its “listing standards” were cited in the message as the reason for the choice. The third-largest stablecoin in terms of market capitalization is BUSD.
According to the Twitter thread, the decision will be applicable to Coinbase.com (basic and advanced), Coinbase Pro, Coinbase Exchange, and Coinbase Prime. “Your BUSD funds will remain accessible to you, and you will continue to have the ability to withdraw your funds at any time,” the exchange noted.
A representative for Coinbase informed Cointelegraph:
“Our determination to suspend trading for BUSD is based on our own internal monitoring and review processes. When reviewing BUSD, we determined that it no longer met our listing standards and will be suspended.”
Requests for comment from Binance did not immediately receive a response.
Subscribe to GreatGameIndia
On the basis of a “rigorous vetting/review process that evaluates assets against legal, compliance, and technological security criteria,” according to Coinbase’s website, its digital asset listings group votes on assets to be listed on the exchange. To make sure an asset keeps up with standards, there are also further business assessments and regular monitoring.
The blockchain infrastructure platform Paxos Trust, which is the issuer of BUSD, apparently received a Wells notice from the United States Securities and Exchange Commission on or around February 12. A Wells notice is a notification of a planned enforcement action. On February 13, Paxos was ordered to stop issuing BUSD by the New York State Department of Financial Services, which caused a $2 billion decline in market worth within days.
Last year, according to CNBC, Google was tying up with Coinbase for cloud payments with cryptocurrencies, but the agreement’s terms weren’t made public.
The following day, Coinbase stated on Twitter, “We don’t know what aspects of BUSD might be of interest to the SEC. What we do know: stablecoins are not securities.”
On February 21, the SEC and Paxos were said to be in “constructive” discussions.