Coinbase will delist Binance USD, claiming the stablecoin “no longer satisfied our listing requirements”

On of March 13, Coinbase, the world’s second-largest cryptocurrency exchange by trading volume, will cease trading in the Binance Dollar (BUSD). This action follows the U.S. regulator’s announcement earlier this month that it was examining the stablecoin as a potential unregistered security.

“After examining BUSD, we found that it no longer matched our listing requirements,” a Coinbase representative said in an email to Forkast.

According to its website, Coinbase controls token listings via its Digital Asset Listings Group, a team examining assets that excludes CEO Brian Armstrong and board members.

After the suspension, users will still be able to access and withdraw their BUSD, Coinbase announced on Twitter. According to CoinMarketCap statistics, BUSD is now the third biggest stablecoin with a market valuation of $10.6 billion.

Coinbase earlier stated on February 15 that stablecoins backed by the U.S. currency are not securities. On February 21, the New York Department of Financial Services (NYDFS) ordered Paxos, which owns and runs BUSD, to cease the issue of the Ethereum-based stablecoin. Paxos has declared that the stablecoin would be supported until at least February 2024.

In addition, Paxos got a Wells notice from the U.S. Securities and Exchange Commission earlier this month, which forewarned of a potential enforcement action from the agency since it saw the stablecoin as an unregistered financial instrument.

Paxos issued a statement last week stating that BUSD is not a security and that the company is engaged in “productive negotiations” with the SEC.

The largest cryptocurrency exchange in the world, Binance, said in an email earlier this month that it exclusively licenses its name to Paxos for usage with BUSD.

Also Read: Solana Foundation Does Not Yet Know What Caused Network Outage During The Weekend