- Coinbase has decided to remove Binance USD (BUSD) stablecoin from its platform due to regulatory concerns.
- The move by Coinbase is one of many actions taken by regulators worldwide to ensure compliance with existing laws and regulations in the cryptocurrency industry.
Coinbase, one of the largest cryptocurrency exchanges in the world, announced that it will be delisting the Binance USD (BUSD) stablecoin from its platform. This move comes amid growing regulatory pressure on Binance, the company that issues the BUSD stablecoin.
Coinbase cited concerns about the regulatory status of BUSD as the reason for the delisting.
Coinbase said in a statement:
We have determined that it does not meet our listing standards. As a result, we will be removing BUSD trading pairs from the platform.
BUSD is a stablecoin that is pegged to the value of the US dollar and is issued by Binance, one of the largest cryptocurrency exchanges by market cap. The stablecoin has gained popularity in recent months as a way to easily move funds between different cryptocurrency exchanges.
However, Binance has come under increasing regulatory scrutiny in recent months, with several countries taking action against the exchange.
These concerns arise because the regulatory status of cryptocurrencies can be unclear, and it can be difficult to determine how they are regulated. Cryptocurrencies are not considered legal tender, which means that they are not recognized as a form of currency by governments. However, they can still be subject to regulations depending on their specific use case and how they are marketed.
Coinbase is not the only exchange to take action against BUSD. OKEx, another major cryptocurrency exchange, has also suspended BUSD trading on its platform.
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 12pm ET.
— Coinbase Assets (@CoinbaseAssets) February 27, 2023
The actions by Coinbase and OKEx demonstrate the regulatory scrutiny that Binance and other crypto exchanges are facing. As the crypto market develops and becomes more established, global regulators are placing greater emphasis on ensuring that businesses adhere to current laws and regulations.
In conclusion, the delisting of BUSD by Coinbase highlights the growing regulatory pressure. As the industry continues to grow and mature, it is likely that we will see more action by regulators to ensure that companies comply with existing laws and regulations. It remains to be seen how Binance will respond to this latest development, but it is clear that the cryptocurrency industry is facing a challenging regulatory environment.