Coinbase announced Monday it would delist the stablecoin Binance USD (BUSD). The exchange plans to no longer support BUSD trading on Monday, March 13, 2023, at around 12 pm ET.
The major exchange said that the move was because BUSD failed to meet Coinbase listing standards following the recent reviews. Coinbase will delist BUSD on Coinbase.com, Coinbase Pro, Coinbase Exchange, and Coinbase Prime.
“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 12 pm ET.”
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Not Good Times for Stablecoins
While users will be unable to trade BUSD, they can withdraw their BUSD anytime they want. The move will not affect customers’ BUSD holdings on the platform.
Decrypt said that Coinbase’s move presented its latest efforts to comply with local regulations. Over the last few months, the US regulators have kept a watchful eye on the crypto industry and been ready to enforce strict rules on suspicious acts.
It happened with Paxos, the issuer of BUSD. The company announced earlier in February that it would stop issuing new BUSD under the regulatory request.
The U.S. Securities and Exchange Commission (SEC) claimed that BUSD was an unregistered security. In response to the SEC’s allegation, Binance said that it ended its collaboration with Paxos.
Harder for Traders
Coinbase’s move also reminds the community of the time when the SEC started the legal battle with Ripple Labs. At that time, the exchange delisted XRP following the announcement.
Many exchanges did the same during the SEC-Ripple lawsuit in 2020, according to Timothy Cradle, Director of Regulatory Affairs at Blockchain Intelligence Group.
Ripple Labs has been accused of selling XRP tokens as securities without first registering them. The lengthy case is scheduled to end this year, with the community eager for a triumph for the crypto business.
Binance Needs Solutions
Of course, no one suffers more than Binance. Coinbase’s move came 4 days after its launch of an Ethereum layer-2 network Base, a competitor of Binance Smart Chain.
The BNB token was down by 1% shortly after the news. At the press time, BNB is trading at around $304 and the price remains volatile, according to CoinMarketCap.
Meanwhile, Binance USD BUSD is still the third largest in the stablecoin market, just behind Tether’s USDT and Circle’s USDC. But BUSD dropped out of the top 10 crypto assets earlier this week after its market cap took a sharp decline.
Binance has been the target of continuous FUDs since the beginning of 2023. Bad news has had a negative impact. As a result, BNB’s market cap has dropped by 10% in the last week. There are obviously no signs of cooling off.
Forbes’ most recent story appears to have gotten on CZ’s nerves. The media giant accused the largest cryptocurrency exchange of committing a shady deed by transferring $1.78 billion in B-peg USDC to several hedge funds without the knowledge of customers.
Binance’s CEO expressed disappointment following the announcement, claiming that Binance was not the same as FTX and that Forbes’ accusations destroyed its own credibility.
Despite its decrease, BNB is not in the top ten biggest losers. Remember that Dogecoin (DOGE) lost 19% of its market capitalization. As a result, recent occurrences appear to be more of a rumor than a genuine issue for Binance crypto investors.
Despite all of the claims thrown against the crypto exchange, the Binance network, BNB Chain, continues to develop.
In the financial markets, liquidity is everything. If Binance has any issues with market liquidity, there could be more problems coming. While Binance is the last man standing, it isn’t an insider firm, which may be an issue.