Coinbase Set to Delist BUSD Stablecoin: Details
- Coinbase will delist the Binance USD (BUSD) stablecoin because it does not meet the “listing standards” the Nasdaq-listed crypto exchange.
- The stablecoin will be delisted across all the exchange’s platforms including the exchange itself, the Coinbase Pro, and the Coinbase Prime.
- The trading of the stablecoin and its pairs will end on March 13, 2023, “on or at around 12 pm ET.”
- All the users that still have BUSD in their accounts can withdraw it from the platform at any time without any hassle.
Coinbase, the largest crypto exchange in the United States has confirmed that it will delist the BUSD cryptocurrency, a popular stablecoin pegged to the US dollar in a 1:1 ratio which was issued by Binance in partnership with blockchain company Paxos, which was the actual owner of the stablecoin. It is also crucial to note that the stablecoin has fallen to the ninth position in the crypto space and has a market capitalization of $10.7 billion.
According to a Twitter post from Coinbase, BUSD does not meet the “listing standards” of the Nasdaq-listed crypto exchange and, therefore, will be delisted across all the crypto exchange’s platforms, i.e., Coinbase.com, Coinbase Pro, Coinbase Exchange, and Coinbase Prime. Moreover, the trading of the stablecoin and its pairs will end on March 13, 2023.
“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,” announced Coinbase.
Furthermore, all the users that still have BUSD in their accounts can withdraw it from the platform at any time without any hassle. Interestingly, Coinbase does not list assets with certain traits, like being over-centralized, having unverifiable code, etc. The exchange also does not list tokens with characteristics that make them similar to securities.
The United States Securities and Exchange Commission (SEC) has accused the exchange of listing many unregistered securities, but Coinbase maintains the fact that it “does not list securities.” The SEC also served Paxos, the owner and issuer of BUSD stablecoin, with a Wells Notice, stating that the stablecoin is an unregistered security.
It seems that the regulatory action taken by the regulator against the BUSD might be a major reason for Coinbase to delist the stablecoin. Interestingly, Paxos has decided to stop the issuing and minting of the stablecoin and ended its partnership with the leading crypto exchange Binance on Feb. 13.
Paxos also confirmed at that time that “new and existing Paxos customers will be able to redeem their funds in US dollars or convert their BUSD tokens to Pax Dollar (USDP), a regulated US dollar-backed stablecoin also issued by Paxos Trust.”
As reported earlier by BitcoinWisdom, Circle, the company behind the USDC stablecoin, warned the New York State Department of Financial Services regarding BUSD last year in the autumn. The financial services company told the regulator that it came face-to-face with blockchain data that revealed that Binance did not store enough crypto in reserve to support the tokens it had issued.
Commenting on the recent BUSD crisis, the CEO of Binance, Changpeng Zhao, also known as CZ in the crypto space, stated that the crypto industry will gradually move to non-dollar stablecoins. The executive believes that the industry will gradually rely on other currencies like the Euro, Yen, and Singapore Dollar to create stablecoins.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
