Binance USD Stablecoin to be delisted from Coinbase, trading will be halted from March 13: full details

Coinbase, one of the largest crypto exchanges in the world, has decided to delist the stablecoin Binance USD (BUSD) from March 13. The move comes amid the BUSD token facing legal challenges in the United States. Paxos, the stablecoin issuer that owned and 100% managed the Binance USD stablecoin is facing a lawsuit from the Securities and Exchange Commission in the United States. Paxos was accused of issuing the BUSD token as an unregistered security, Paxos meanwhile denied the allegation.

“We have determined that BUSD does not currently meet our trading support standards,” a Coinbase spokesperson reportedly said, without giving details.

Launched in 2019, the BUSD stablecoin built on the Ethereum blockchain, currently has a market valuation of over $10 billion (roughly Rs. 87,987 crore). According to CoinMarketCap, the market capitalization of BUSD has fallen by 3% in the past 24 hours.

At the time of writing, each BUSD was trading at $1 (roughly Rs. 82), crypto price tracking by Gadgets 360 showed.

Coinbase claims on its website that its Digital Asset Listing Group has the right to vote for any cryptocurrency to be listed or delisted.

Assets are regularly scanned based on their legal status, technical security quotient as well as compliance with laws, violations of which could lead to delisting of assets from Coinbase.

The decision will be executed on Coinbase’s suite of services, including Coinbase.com, Coinbase Pro, Coinbase Prime, as well as Coinbase Exchange.

Meanwhile, Coinbase will continue to allow its users to access and withdraw their BUSD funds despite its decision to delist the token. Users, however, will not be able to redeem the token on Coinbase after March 13.

BUSD issuer Paxos received a notice from the New York State Department of Financial Services earlier in February. The financial authority ordered Paxos to stop issuing BUSD tokens.

Shortly after the news broke, Coinbase had noted that stablecoins are not considered securities in the United States.

Tied to fiat currency like the US dollar or reserved assets like gold, stablecoins are crypto assets that lock their values ​​to their underlying assets.

This protects stablecoins against fluctuations in the volatile crypto industry compared to other assets.

Tether, USD Coin, and Ripple are some of the other popular stablecoins pegged to the US dollar, as is BUSD.

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