Cryptocurrency exchange Coinbase has announced that it will cease trading and delisting the Paxos-managed stable coin asset BUSD. The decision comes after Paxos revealed that the New York State Department of Financial Services has directed the company to stop issuing the token BUSD, which is pegged to the US dollar.
Coinbase to suspend BUSD stabled coins on
On February 27, 2023, Coinbase announced that it will suspend trading in binance usd (BUSD) on February 13, following a recent regulatory crackdown on stablecoins by the New York State Department of Financial Services (NYDFS). According to press reports, the U.S. Securities and Exchange Commission (SEC) sent Paxos a Wells Notice regarding BUSD on the same day. In a press release, Paxos confirmed that the NYDFS instructed regulated companies to stop issuing stablecoins.
“We regularly monitor our exchange assets to ensure they meet our listing criteria. Based on our most recent review, Coinbase will cease trading [Binance usd] (BUSD) on or about March 13, 2023 at approximately 12:00 pm ET,” the company said in atweetpublished Monday.” Trading will be suspended on Coinbase.com (Simple and Advanced Trade), Coinbase Pro, Coinbase Exchange, and Coinbase Prime.”
Several crypto advocates commented on Coinbase’s BUSD outage.” When Gary comes for that, will you suspend USDC?” Oneaskedin the thread. Another criticized the timing of Coinbase’s suspension of stablecoin.” So at what point did BUSD suddenly fail to meet your listing standards, and which standard specifically did it fail to meet?” anotherresponded to Coinbase’s tweetwrote. According to the stablecoin token contract at press time, statistics show 177,125 unique wallets holding BUSD.
Currently, BUSD is the 11th largest cryptocurrency by valuation after being removed from the top 10 crypto assets by market capitalization; prior to Paxos’ announcement on February 13, there was $16.1 billion BUSD in circulation; as of February 27, there is$10.73 billionIt is. After the removal of 5.37 billion BUSD from the token count, there are 10.73 billion BUSD in circulation. According to Binance’s reserve portfolio, the exchange holds 8.64 billion BUSD, which represents 80.52% of the total supply in circulation.
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