Coinbase, the famous cryptocurrency exchange, stated on February 27, 2023, that dealing of the Binance USD (BUSD) stablecoin will be suspended starting March 13, 2023. The move follows the New York State Department of Financial Services (NYDFS) recent governmental assault on the stablecoin on February 13, 2023. Paxos, the business in charge of the BUSD stablecoin, verified in a news statement that the NYDFS had ordered it to cease releasing the stablecoin. The bitcoin community has had varied responses to Coinbase's statement.
Coinbase Suspends BUSD Transactions Coinbase stated on Twitter that dealing in the BUSD stablecoin will be suspended on March 13, 2023, at or around 12 p.m. ET. Transactions on Coinbase.com (Basic and Advanced Trade), Coinbase Pro, Coinbase Exchange, and Coinbase Prime will be halted. As of press time, there were 177,125 distinct accounts containing BUSD, according to the stablecoin's token contract.
Coinbase's BUSD Dealing Ban Raises Bitcoin Community Worries
The Bitcoin Community Has Different Responses The bitcoin community has had varied responses to Coinbase's statement. Some have questioned the timeliness of the ban, wondering when the BUSD stablecoin abruptly failed to reach Coinbase's ranking standards and which particular standard it failed to meet. Others have expressed worry about Coinbase's suspension of BUSD trading and have questioned whether it will also halt trading in other stablecoins, such as the USDC stablecoin if authorities begin to examine them as well.
Existing BUSD Value and Moving Stock There were 16.1 billion BUSD in existence prior to the NYDFS's order to Paxos to cease releasing the BUSD stablecoin. There are 10.73 billion BUSD in existence as of February 27, 2023, after 5.37 billion BUSD were deducted from the total amount of coins. Binance's reserve inventory shows that the exchange owns 8.64 billion BUSD or 80.52% of the total trading quantity. After being pulled from the top ten crypto assets by market value, BUSD is now the 11th biggest coin by price.
Conclusion
The cryptocurrency community has expressed conflicting feelings about Coinbase's move to halt trading of the BUSD stablecoin in response to the NYDFS's order to Paxos to stop releasing it. While some have questioned the timeliness of the halt, others have expressed worry about Coinbase's ability to continue dealing with other stablecoins if authorities begin to examine them. It remains to be seen how Coinbase's move will affect the BUSD stablecoin's value and moving quantity.
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