Coinbase CEO Brian Armstrong detailed why they made such a decision about a recently delisted Binance-branded altcoin.
Coinbase CEO talks about delisted Binance-branded altcoin
The exchange had previously announced without going into any detail that it took action because the Binance-branded stablecoin BUSD did not meet the listing standards. As Kriptokoin.com, we have included the details in this article. CEO Brian Armstrong said in a new statement today that the exchange has decided to suspend Binance USD (BUSD) trading as he has concerns about the company’s liquidity.
Coinbase previously said that it delisted BUSD because, based on its own internal monitoring and review processes, the stablecoin no longer meets listing standards. The exchange did not provide any additional details about the BUSD delist decision afterwards.
We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent reviews, Coinbase will suspend trading for Binance USD (BUSD) on March 13, 2023, on or around 12pm ET.
— Coinbase Assets (@CoinbaseAssets) February 27, 2023
Brian Armstrong, CEO of Coinbase, told Bloomberg TV on Wednesday morning about the exchange’s BUSD delisting decision:
We did this because Paxos, the company authorized to issue BUSD, was ordered to cease printing BUSD, so we were concerned about liquidity issues for our clients.
Coinbase suspends BUSD trading from March 13
The US-based exchange recently announced that it will suspend BUSD trading from March 13. According to the Twitter announcement, BUSD will also be delisted from Coinbase.com, Coinbase Pro, Coinbase Exchange and Coinbase Prime platforms. “You will continue to have access to your BUSD funds and you will be able to withdraw your funds at any time,” the exchange said to its users.
According to Coinbase’s website, the cryptocurrency listing group is voting on cryptocurrencies to be listed on the exchange, “informed by a rigorous review/audit process that evaluates cryptocurrencies against legal, compliance, and technical safety standards.”
Meanwhile, Coinbase posted a Twitter thread on Feb. 28, stating, “We don’t know what aspects of BUSD might be of interest to the SEC. What we do know: stablecoins are not securities.” The US central exchange’s BUSD delist decision comes at a time when Binance is in conflict with US regulators. Global news outlet Forbes recently suggested that the leading exchange is engaged in fraudulent transactions such as FTX.
Binance is having a tough time under the lens of US regulators
The New York Department of Financial Services (NYDFS) recently ordered Paxos to cease printing of Binance-branded stablecoin BUSD, citing unresolved issues with Paxos’ oversight over its relationship with Binance. BUSD price lost its dollar stability for a short time after the flash decision. The February 13 decision resulted in a $2 billion drop in the market value of BUSD within days.
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