Coinbase finally disables trading for Binance USD (BUSD)

In a recent development, Coinbase has announced that it has disabled trading for Binance USD (BUSD) through their ‘Coinbase Assets’ Twitter page. The decision comes in the wake of increased regulatory scrutiny of Binance, which has faced multiple investigations and regulatory actions in recent months, and also the criteria for coinbase listing standards.

Following this announcement, they further said that users’ BUSD funds with Coinbase, will remain accessible to the users and they will be able to withdraw their funds at any given time but reiterated that the trading of BUSD will be suspended on Coinbase.com, Coinbase Exchange, Coinbase Prime as well as Coinbase Pro.

Coinbase mentioned that the action was a continuation of its continuous efforts to guarantee the security and compliance of its platform. The exchange added that it would continue to watch the regulatory landscape and would take the right procedures to comply with any additional requirements as they become available.

Binance USD (BUSD) is a stable cryptocurrency issued by Paxos and is pegged to the value of the US dollar. Stablecoins have become increasingly popular over the past few years as a means for traders to transfer funds between various cryptocurrency exchanges without resorting to the use of traditional currencies.

Binance has not yet issued a statement regarding Coinbase’s action. In recent months, the exchange has been subjected to an increased level of regulatory scrutiny, with regulators in numerous jurisdictions raising concerns about its compliance with anti-money laundering legislation and other regulations. 

The most recent regulatory problem trailing the BUSD is that the SEC intends to sue Paxos. Paxos is the company that mints and issues BUSD but SEC allege that Paxos does this as an unregistered Security and as thus, ordered them to stop minting BUSD.

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