Coinbase Will Halt BUSD Trading, Here’s When


Per a report from crypto news outlet The Block, crypto exchange Coinbase will halt trading operations with the Binance-branded stablecoin, BUSD. The digital asset has been heavily scrutinized following the Securities and Exchange Commission (SEC) Wells Notice against its issuer, Paxos.

Coinbase Succumbs To The Pressure?

As Bitcoinist has been reporting, Paxos was accused by the SEC of allegedly violating investor protection laws when issuing Binance USD (BUSD). The Commission claims that BUSD, and many other tokens in the crypto ecosystem, is a security.

Therefore, Paxos allegedly needed to register the product with the SEC. This legal action from the U.S. regulator forced the crypto firm to cut ties with its long-term partner, crypto exchange Binance, and to stop issuing BUSD.

Stay in the know on crypto by frequently visiting Crypto News Today

Coinbase has become the first crypto exchange that will stop trading activity with this digital asset. According to The Block, starting March 13, 2023, users cannot buy or sell cryptocurrencies in exchange for the Binance-branded stablecoin.

A Coinbase spokesperson told The Block:

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.

As the report confirmed, users can still withdraw their funds in BUSD. Still, all commerce will be suspended across the multiple Coinbase products, including, Advanced and Simple trading, Pro, Exchange, and Prime.

COIN’s price trends to the downside on the daily chart. Source: COINUSD Tradingview

BUSD Will Suffer Slow Death?

Coinbase is the first, but might not be, the last crypto trading platform to de-list and halt commerce with the Binance-branded digital asset. The CEO of crypto trading venue Binance, Changpeng “CZ” Zhao, already predicted that BUSD’s market cap will “decrease over time.”

 “IF” BUSD is ruled as a security by the courts, it will have profound impacts on how the crypto industry will develop (or not develop) in the jurisdictions where it is ruled as such. Binance will continue to support BUSD for the foreseeable future. We do foresee users migrating to other stablecoins over time. And we will make product adjustments accordingly (…).

This drop in market capitalization can only lead to decreased use cases and the number of people using BUSD for regular trading activities. At the time, CZ stated the following on BUSD’s fate and the implications for the crypto industry as the U.S. launches an all-out crackdown on the nascent sector:CRYPTOCASTER® - DECENTRALIZED FREEDOM!

Please Read Essential Disclaimer Information Here.
© 2024 Crypto Caster provides information. does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.

Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
MATIC – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
LITECOIN – ltc1qxsgp5fykl0007hnwgl93zr9vngwd2jxwlddvqt

You may also like