Binance USD Stablecoin Gets Booted From Coinbase Amid Growing Regulatory Pressure

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    San Francisco-based cryptocurrency exchange Coinbase has kicked Binance USD (BUSD) off its platform. Coinbase cited the fact that it did not meet the listing criteria as the reason for delisting the Binance-branded dollar-pegged stablecoin.

    This comes less than a month after cryptocurrency brokerage firm Paxos Trust announced it was shutting down after receiving notice from the New York State Department of Financial Services, state regulators overseeing it, and the U.S. Securities and Exchange Commission. It happened at home. Wells will stop mining BUSD after being notified. (SEC).

    Coinbase suspends business trading

    Coinbase is delisting BUSD.

    One twitter thread On Monday, Coinbase, one of the world’s most prominent cryptocurrency exchanges, announced its intention to delist the business from its platform starting March 13. This removal affects (Simple and Advanced), Coinbase Pro, Coinbase Exchange, and Coinbase. important. According to Coinbase, customers will still be able to access business funds and withdraw at any time.

    Coinbase’s BSD suspension follows a recent internal review, explained by an exchange spokesperson: “

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    Earlier this month, Paxos announced that it was terminating its relationship with Binance ahead of a potential SEC lawsuit over the issuance of BUSD, the world’s third-largest stablecoin by market cap. Securities regulators plan to initiate enforcement action against Paxos for alleged violations of investor protection laws.

    For some observers, the SEC’s action on BUSD is more about Binance, an exchange without a clearly defined headquarters, than it is about stablecoins. In particular, the SEC took no action against Paxos’ gold-backed stablecoin known as Pax Gold (PAXG). More interestingly, Binance is expected to recently admit a gap in regulatory compliance and pay fines for past misconduct.

    Coinbase’s move away from BSD could be an attempt to avoid scrutiny from U.S. regulators who may claim the exchange promotes the sale of unregistered securities. .

    Despite this, Coinbase still faces the possibility of an SEC investigation into whether the exchange allows Americans to trade crypto assets that should have been registered as securities. said it did not violate the Federal Security Act.



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