- The reason is their non-compliance with the standards of the exchange
- Delisting starts March 13
Starting March 13, the American exchange Coinbase will stop trading the stablecoin Binance USD (BUSD). The platform statement says:
“We regularly monitor assets on our exchange to ensure they meet listing standards. According to our latest reviews, Coinbase will suspend BUSD trading on March 13, 2023 at around 12:00 PM ET.”
This applies to the main exchange, as well as sections of Coinbase Pro, Coinbase Prime and other sites. But customers will be able to withdraw their funds in BUSD using available methods.
According to CoinMarketCap, BUSD capitalization has fallen to $10.7 billion, having lost $5.4 billion since February 13.
Earlier, the Aave community decided to consider a proposal to freeze the use of BUSD as collateral.
Paxos case
BUSD’s problems began after the New York State Department of Financial Services (NYDFS) launched an investigation into Paxos, the issuer of Binance USD.
The company later stated that it would stop issuing new coins in order to comply with the requirements of the regulator. Paxos has now officially terminated its partnership with Binance. But the company will continue to support BUSD buyback and conversion operations until at least February 2024.
In its statements, the SEC does not rule out that it could sue Paxos for violating securities laws when issuing BUSD.
