Binance USD Delisting
Coinbase, one of the largest crypto exchange platforms, has dominated the headlines after announcing the delisting of Binance USD from its platform due to the said stablecoin failing to meet its listing standards. The company made the announcement via Twitter, and the delisting is set to take place on March 13.
The company’s spokesperson stated that their decision to delist the Binance stablecoin is based on their own internal monitoring and review processes. According to the spokesperson, during their review of Binance USD, they determined that the stablecoin is no longer meeting their listing standards, so they have decided to suspend it from the platform.
Coinbase.com, Coinbase Pro, Coinbase Exchange, and Coinbase Prime are all expected to be delisted as a result of the announcement. The company then clarified that, despite the delisting, users would still be able to access and withdraw their BUSD funds at any time. Following this announcement, the Binance Coin dropped by 1% and was trading at $302.57 at the time of writing.
Coinbase and Paxos Leaving Binance USD
As previously stated, Coinbase has officially announced the delisting of the Binance USD in the respective platform, as it sees no commercial benefit in continuing to use BUSD. Their customers are expected to be unable to trade BUSD afternoon on March 13.
Aside from Coinbase severing ties with Binance, Paxos has already announced the termination of its relationship with the largest cryptocurrency exchange platform — Binance, citing regulatory action from the New York Department of Financial Services as the reason. This occurred at the same time that Paxos was facing allegations from the Securities and Exchange Commission, according to which the regulatory platform intends to sue Paxos for violating investor protection laws.
Binance, on the other hand, has already provided details about the two parties’ commercial arrangement. They have granted Paxos permission to mint new BUSD on the Ethereum blockchain while also providing licensing support. Paxos then claimed that the arrangement was “approved by the New York Department of Financial Services,” but the NYDFS changed its mind due to “several unresolved” oversight issues.
According to reports, the BUSD stablecoin’s influence over the crypto market is a result of regulatory scrutiny and Coinbase’s announcement of delisting the stablecoin. On the other hand, Binance CEO Changpeng Zhao stated that, at the same time as the Paxos announcement was made public, his crypto exchange anticipates several users migrating to other stablecoins. He also stated that they would make appropriate adjustments, such as shifting away from using BUSD as the primary trading pair.