Coinbase suspends BUSD trading amid regulatory concerns
Coinbase has announced to suspend trade for Binance USD (BUSD) due to concerns raised by regulators about Binance’s operations.
Coinbase, the leading U.S. cryptocurrency exchange, has announced to suspend trade for Binance USD (BUSD), a stablecoin issued by Binance, the number one global crypto exchange. The suspension takes effect March 13, and will affect all BUSD trading pairs on the Coinbase platform.
The decision by Coinbase to suspend BUSD trading follows recent concerns raised by regulators about Binance’s operations, which have resulted in several countries cracking down on the exchange. Concerns have been raised about Binance’s compliance and cooperation with anti-money laundering (AML) and know-your-customer (KYC) regulations.
Coinbase’s move is very important as BUSD is one of the largest stablecoins in the market, with a market capitalization of over $11 billion. Stablecoins are cryptocurrencies that are created to maintain a stable value, usually pegged to a fiat currency such as the U.S. dollar.
Following regulatory action by the Securities and Exchange Commission (SEC), Paxos, the entity responsible for issuing BUSD, ceased the production of the stablecoin.
The suspension of BUSD trading on Coinbase may impact the liquidity and demand for the stablecoin. However, it is important to note that BUSD can still be traded and available on other exchanges.
This development shows the growing regulatory scrutiny that the cryptocurrency industry is facing. As the industry continues to grow and mature, regulators are increasingly focusing on ensuring that companies operating in the space comply with existing laws and regulations.
Companies that fail to do so risk facing significant regulatory and legal consequences.