The exchange earlier stated that it took the decision because BUSD did not match its listing requirements, but did not elaborate.
Coinbase CEO Brian Armstrong stated that the exchange opted to suspend trading of the Binance Dollar (BUSD) due to liquidity problems.
The cryptocurrency exchange had earlier stated that the stablecoin no longer matched its listing requirements based on its own internal monitoring and review processes. Coinbase provided no additional information.
Armstrong appeared on Bloomberg TV on Wednesday morning and provided a more comprehensive explanation for the action.
Armstrong explained, “Since Paxos, the issuer of BUSD, was ordered to cease minting it, we were concerned about liquidity difficulties for our customers.”
Paxos was recently instructed by the New York Department of Financial Services (NYDFS) to cease minting Binance-branded BUSD owing to unresolved issues with Paxos’ management of its connection with Binance. According to reports, the Securities and Exchange Commission also intended to sue Paxos for offering BUSD as an unregistered security.
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