Coinbase, the largest US cryptocurrency exchange, announced that it will suspend the trading of Binance USD (BUSD).
Coinbase made a statement on February 27 from its official Twitter account. in the announcementAs a result of recent reviews, stablecoin BUSD, of which Paxos is the issuer, It will suspend trading on March 13. reported. Coinbase also to BUSD funds While explaining that there will be no problems with access Funds can be withdrawn at any time told.
In a statement on the subject, a Coinbase spokesperson made the following statements:
Our reason for suspending BUSD transactions is due to our review and monitoring processes. During our review of BUSD, we determined that it did not meet our listing standards and that we should suspend its trading.
The order to stop the issuance of BUSD, given by the New York Department of Financial Services (NYDFS), was answered by Paxos. The company will stop issuing BUSD upon this order, but Over 1 year He said he would continue to provide support.
On the other hand, the US Securities and Exchange Commission (SEC) at the same time, a letter to Paxos that BUSD is a security. Wells statement had sent. After Paxos notification, one of the BUSD objected to the And express that they will defend the process in court if necessary had brought. It is known that the two are currently in constructive relations on BUSD.
Binance is on all these events. Using Paxos brands stated that they gave permission for from BUSD in time they’re going to get rid of it completely had expressed.
A Retaliation to Binance?
Experts commenting on Coinbase’s decision interpreted it as a retaliation against Binance. Binance last September USDC above all Pax Dollar (PUSD) and TrueUSD (TUSD) ended its support and these stablecoins 1:1 rate to BUSD had translated it.
With a vision of creating a more open global financial system in 2018 It is thought that this decision of Binance is under the BUSD move of Coinbase, which plays a role in the launch of USDC and has close relations with Circle.
It was also claimed that the reason behind BUSD’s sudden entry into regulators’ radar was Binance’s termination of USDC support. Some anonymous sources claimed that Circle had warned the regulators about BUSD.