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Why Coinbase Decided To End BUSD Trading

why coinbase decided to end busd trading

The first months of 2023 were indeed very exciting for cryptocurrencies. Despite the pressure and hard times of cryptocurrency exchanges, Bitcoin and Altcoins were still rising rapidly. Subsequently, the cryptocurrency world experienced very difficult and different days first with the collapse of LUNA and then with the bankruptcy of FTX.

All cryptocurrency exchanges came under close scrutiny, including Binance in America. Detailed investigations were conducted. Later, this situation spread to the countries of the European Union. Binance, which is considered the largest exchange in the world, was excluded in a way.

The Decision To Stop Transactions Conducted By Coinbase On Binance USD

After the recent events surrounding Binance USD (BUSD), Coinbase quickly made a decision. The exchange announced that BUSD transactions will be stopped on March 13.

The New York Department of Financial Services’ (NYDFS) call to end the relationship with Binance referenced “many unresolved issues related to the oversight of the agreement with Paxos” for BUSD, which is produced by stablecoin creator Paxos under the Binance brand. Paxos, which issued USDP and BUSD, also announced that it will no longer issue official tokens.

Binance stopped withdrawals of USDC, the stablecoin issued by Circle and launched by Coinbase in December 2017. Today, months later, Coinbase, the largest exchange in the United States, has taken a similar step for BUSD. According to the announcement, Coinbase will stop BUSD transactions on March 13.

why coinbase decided to end busd trading

What Exactly Does This Mean?

“We routinely review assets on the exchange to ensure they meet listing criteria,” Coinbase said, adding that the decision to suspend was based on recent valuations. As of the specified date, BUSD transactions will no longer be supported on all Coinbase platforms. The message also includes the following statements: your BUSD balance will still be available to you and you can withdraw it at any time.

He can be sure that we will definitely see more different versions of the agreements between Binance and Coinbase in the medium and long term. Although the BUSD event does not seem to be directly related to Binance, it stands out as a move that severely limits Binance’s mobility on other exchanges.

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