Coinbase Will Suspend Binance USD Trading
Coinbase, one of the world’s leading cryptocurrency exchanges, has announced it will suspend trading in the stablecoin Binance USD (BUSD).
The move comes following investigations by authorities in the United States on the exchange. It is alleged that the exchange is violating federal securities laws by operating as an unlicensed securities broker.
Reasons for Suspension
Coinbase has stated that it is suspending BUSD trading in order to mitigate regulatory risk. This is a response to ongoing investigations of Binance, the exchange behind the stablecoin.
BUSD is a tokenized US dollar, meaning it is backed by US dollars and is meant to remain at a stable value of one US dollar. However, it has recently come under scrutiny due to its lack of transparency concerning its reserves.
What Will Change?
Coinbase’s suspension of BUSD trading will take effect on June 5. All customers must cancel their open orders and withdraw any BUSD they currently have in their Coinbase accounts.
Coinbase has also stated that it does not believe this decision will have a significant impact on its customers or on the cryptocurrency markets.
Conclusion
Coinbase’s suspension of BUSD trading is a response to the ongoing investigations by US authorities into Binance’s compliance with federal securities laws. All customers are advised to cancel their open orders and withdraw any BUSD they currently have in their Coinbase accounts before the suspension takes effect on June 5.