Coinbase, one of the world’s largest cryptocurrency exchanges, has suspended trading for Binance USD (BUSD), a stablecoin issued by Paxos. The decision to delist BUSD was announced by Coinbase CEO Brian Armstrong in February due to liquidity concerns. The move followed regulatory action by the New York Department of Financial Services and the Securities and Exchange Commission, which reportedly caused Paxos to stop minting the stablecoin.
According to Coinbase’s recent announcement, users holding BUSD will still be able to withdraw their assets at any time. The suspension of trading will not affect the accessibility of BUSD funds. The move is another blow to BUSD, which has already faced challenges from regulators.
We have disabled trading for Binance USD (BUSD). Your BUSD funds will remain accessible to you, and you will continue to have the ability to withdraw your funds at any time. https://t.co/jfpCZX7UTC
— Coinbase Assets (@CoinbaseAssets) March 13, 2023
In a recent episode of the Bankless podcast, Armstrong emphasized the importance of cryptocurrency in updating the financial system. He noted that the traditional financial system is outdated, slow, and burdened by laws and codes that are decades old. Armstrong believes that cryptocurrency has the potential to revolutionize the financial system, but this will require support from elected representatives who value economic freedom.
Despite setbacks faced by FTX and Silvergate, Armstrong believes that the broader trust within the crypto community has never been higher. He predicted that if regulators embrace the potential of cryptocurrency and work towards its integration, regulatory challenges will ultimately be resolved in a positive way.
Coinbase’s decision to suspend trading for BUSD is a reflection of the growing regulatory scrutiny faced by cryptocurrencies. It remains to be seen whether this move will lead to greater acceptance of cryptocurrency or further regulatory hurdles. However, as Armstrong notes, the potential for cryptocurrency to transform the financial system remains significant, and continued innovation and adoption will be crucial in unlocking this potential.
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