Crypto exchange Coinbase announced that it will be delisting Binance USD stable coin from March 13, 2023, as the token failed to meet its listing standards amidst ongoing regulatory concerns.
Trading of this token will be suspended from Coinbase.com, Coinbase Pro, Coinbase Exchange and Coinbase Prime, the company said on Twitter. This comes two weeks after Paxos Trust, which owned and operated BUSD since its inception in 2019, said it will stop minting the stable coin due to regulatory pressures.
Coinbase decided to delist the token based on its internal monitoring and reviewing process. BUSD doesn’t meet the exchange’s listing standards anymore, a Coinbase spokesperson told crypto news platform Decrypt.
According to media reports, on February 12, the US Securities and Exchange Commission (SEC) had issued a Paxos a Wells Notice, a letter sent by a securities regulator regarding a prospective lawsuit, alleging violation of investor protection law.
In response, Paxos has said that it will not mint BUSD anymore and its relationship with Binance-branded stablecoin ends by February 2024.
Paxos is a blockchain infrastructure platform that entered into a licensing agreement with Binance in April 2019. Coinbase had listed BUSD from April of that year, according to Decrypt.
Closer home, Binance has been entangled in a legal battle with the country’s largest crypto exchange WazirX’s parent Zanmai Labs, questioning the ownership of the firm’s assets, which it claimed that it never had. It recently also suspended its wallet services to WazirX’s customers. Binance had reportedly acquired WazirX in 2019, according to news reports and company blog posts of Binance.
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