• Coinbase announced that it will suspend Binance USD (BUSD) trading in mid-March due to „listing standards“.
• This decision came two weeks after the US SEC issued a wells notice for issuing a security, the BUSD.
• The suspension will apply to Coinbase Pro, Coinbase Prime, Coinbase Exchange, and the simple and advanced versions of Coinbase .com.
Coinbase Suspension of Binance USD Trading
Coinbase has announced that it will suspend trading for Binance USD (BUSD) on March 13, 2023, on or around 12pm ET. The announcement was made via Twitter citing “listing standards” as the reason for suspension.
SEC Notice against Paxos Trust
The decision comes two weeks after the US Securities and Exchanges Commission (SEC) issued Paxos Trust with a wells notice for issuing a security, the BUSD. Following this SEC’s notice, New York Department of Financial Services (NYDFS) ordered Paxos to halt BUSD issuance which Paxos immediately obeyed.
Evaluation Process of Digital Assets
For any digital asset to be listed on Coinbase, it has to be voted for by the digital asset listing group. The voting process is informed by a rigorous vetting/review process that evaluates whether the assets are legal and comply with the technical security standards. There are also additional business assessments and considerations taken into account before an asset can be listed on Coinbase.
Access To Funds Remains Intact
Users will have access to their BUSD tokens and they can withdraw them at any time without any disruption in service from Coinbase. The exchange said: „Your BUSD funds will remain accessible to you, and you will continue to have the ability to withdraw your funds at any time.“
Future Of BUSD Unclear
It is not clear what the future of BUSD is especially after Binance recently minted 50 million True USD stablecoins.