From March 13th, Coinbase users will no longer be able to trade Binance USD (BUSD).
According to the Twitter thread shared by Coinbase Assets on February 27, the company will halt BUSD trading on all of its platforms on March 13th.
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In the announcement, the crypto exchange noted:
We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent reviews, Coinbase will suspend trading for Binance USD (BUSD) on March 13, 2023, on or around 12pm ET.
In a Twitter thread, Coinbase highlighted that after March 13th, users will continue to have access to their BUSD and will be able to withdraw their holdings at any time.
The announcement comes just two weeks after the New York financial watchdog, NYDFS, ordered Paxos to stop minting BUSD. According to a consumer alert from the regulator, they issued the order due to "several unresolved issues related to Paxos' oversight of its relationship with Binance."
Soon after, the US SEC revealed plans to sue Paxos over its BUSD token since it considers it unregistered security. As a result of regulatory pressure, Paxos announced that it will be cutting ties with Binance and will cease the issuance of BUSD.
Responding to US regulatory pressure, the chief strategy officer at Binance, Patrick Hillman, revealed that the company could soon issue a new stablecoin, not pegged to the US dollar. Before Hillman's revelation, Binance CEO Changpeng "CZ" Zhao tweeted that the company was exploring the possibility of launching a non-USD pegged stablecoin.
Paxos revealed that it held "constructive discussions with the SEC" on its decision to classify BUSD as a stablecoin.