Coinbase will start trading the stablecoin from March 13 Binance, BUSD, going to stop. The American exchange announced this on Twitter yesterday. According to Coinbase BUSD no longer meets the ‘listing criteria’.
Coinbase removes BUSD
At the time of writing, BUSD is still one of the largest stablecoins in the world, ranking third behind UDST and USDC. The stablecoin is issued by Paxos on behalf of Binance
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.
— Coinbase Assets (@CoinbaseAssets) February 27, 2023
However, Coinbase users need not worry that they will soon be unable to access their BUSD stablecoins. It will still be possible for Coinbase and Coinbase Pro users to withdraw their BUSD and sell it elsewhere for, for example, dollars or bitcoin (BTC).
That Coinbase no longer lists meeting the listing criteria as a reason for removing BUSD from the platform is distressing. Namely, it suggests that Coinbase believes that BUSD is no longer safe. The exact reasons why Coinbase thinks this is not known.
A spokesperson for the US exchange had the following to say against Cointelegraph on the issue:
“Our decision to suspend BUSD trading is based on our own internal review and review processes. In reviewing BUSD, we determined that it no longer meets our listing standards and will be suspended.”
BUSD and Paxos
The news that Coinbase is removing BUSD from their platform comes after a period in which, of course, a lot of misery about BUSD, Binance and Paxos came out. So was recently in it crypto news to read that Paxos was called to the mat by the American Securities and Exchange Commission (SEC).
Then Paxos ended all cooperation with Binance. According to Paxos, however, this would have nothing to do with the allegations of the US regulator. As a result of all this negative news, the price of BUSD, which should of course be exactly $1, briefly crashed completely up to 20 cents.
All in all, it is not a good period for the BUSD stablecoin.