The American exchange Coinbase will stop trading with the Binance stablecoin, BUSD, on its platform. The company itself informed about this suspension on Monday, February 27, through the social network Twitter.
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Coinbase reported that trading with BUSD will stop working on its exchange site as of March 13. The company alleges that the asset no longer meets their standards, as mentioned in one of their tweets.
“We regularly monitor the assets on our exchange to ensure they meet our standards,” was Coinbase’s comment on the matter.
The measure will affect the use of BUSD in all Coinbase modalities for simple or advanced trading: Coinbase Exchange, Coinbase Pro and Coinbase Prime.
Although they will no longer be able to trade the stablecoin, user funds will continue to be stored on Coinbase and available for withdrawal at any time, the exchange added in a second tweet.
US-based exchange Coinbase especially covers the North American market. However, it admits users from Latin American countries such as Argentina, Mexico, Chile or Colombia, according to its website. Despite what its page says, according to which it accepts Venezuelans, Coinbase services cannot be accessed from the South American country.
The halt to trading with BUSD on Coinbase comes a couple of weeks after Binance itself and Paxos, its partner in the issuance of the stablecoin, announced that no more units of the currency would be issued, anchored to the US dollar.
The decision was made as a result of an order issued by the New York Department of Financial Services. In addition, an alleged lawsuit by the United States Securities and Exchange Commission, the SEC, targeted Binance.
After the announcement, users started to react by depositing more BUSD on exchanges. Presumably to get rid of them and migrate to other options. Everything indicates that they have opted for Tether (USDT).
Once part of the top 5 most valuable assets on the market, today BUSD is already ranked number 9 among the coins with the most capitalization, according to CoinMarketCap. It is currently the third most valuable stablecoin, still with twice the accumulated capital of DAI.