One of the world’s leading cryptocurrency exchanges, Coinbase has stated that it will stop Binance USD trading amid regulatory scrutiny. The US-based crypto exchange added that the BUSD no longer meets its standard.
It would be recalled that the New York State Department of Financial Services directed Paxos Trust to stop issuing new BUSD tokens because it is an unregistered security
The regulatory department also added that it plans to sue Paxos for violating investor protection laws. This situation has thereby caused Paxo, the mother company of BUSD to end its relationship with Binance and cease issuance of BUSD. However, it noted it will support reserves for at least 12 months
Investors King understands that Coinbase’s decision to suspend trading for BUSD is likely an attempt to avoid scrutiny from regulators that might claim the exchange facilitated the sale of unregulated securities.
Stating on the Twitter platform, the San Francisco-based company said the suspension will come to effect in March 2023.
“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 12 pm ET.,” the tweet partially read.
Meanwhile, the largest crypto exchange in the U.S. has decided to take a more active role in helping to advance crypto-friendly policy across the United States by launching “Crypto435” to help connect advocates and give crypto a greater voice in the government.
The cryptocurrency exchange giant thus launched a grass root political campaign to promote pro-cryptocurrency policies. Coinbase noted that the campaign is to grow crypto advocacy groups by sharing tools and resources.
This new development is coming amid widespread calls for cryptocurrency regulation. Recall that many countries in Europe and Asia including Hong Kong have shown intention in regulating the cryptocurrency industry.
