US-based cryptocurrency exchange Coinbase has announced that it has suspended trading in the BUSD pair.
The waters in the crypto money industry do not stand still. Recent events have begun to question the reliability of stablecoins in the cryptocurrency markets.
Coinbase Freezes BUSD Parity Transactions
There are problems with the security of stablecoins in the cryptocurrency industry. In the US, there are concerns about bank failures and access to deposits held at these banks.
In these turbulent days in the industry, the American crypto exchange Coinbase suspended the transactions in the BUSD parity.
In February, the US-based crypto exchange Coinbase announced the liquidity concerns of Brian Armstrong, CEO. These liquidity concerns were cited as the reason for the freezing of transactions in the BUSD parity.
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
The decision comes after Paxos, the BUSD issuer, stopped issuing stablecoins as a result of regulatory action from the New York Department of Financial Services and reportedly the federal Securities and Exchange Commission.
According to Coinbase’s announcement, users holding BUSD will be able to withdraw their holdings at any time. This decision at Coinbase comes after Paxos began discussions with the SEC regarding its stablecoin, BUSD. According to the announcement, this decision of the stock market was made with the concerns of the liquidity problem.
