• Coinbase was the first major exchange to delist BUSD after New York regulators banned its issuance.
• The decision came after Circle, Coinbase’s partner, reportedly issued a complaint against BUSD to New York regulators.
• Binance has been trying to distance itself from Paxos and BUSD in response to the public order.
Coinbase Delists BUSD
Coinbase is the first major exchange to drop BUSD, a stablecoin issued by its partner Circle, after New York regulators targeted it for liquidation. This marks another blow in the “stablecoin wars” between exchanges vying for dominance over the lucrative market.
Circle Issues Complaint Against BUSD
Trouble for BUSD began when Coinbase’s partner Circle reportedly issued a complaint against it to New York regulators. At the time, USDC and BUSD were competing for the position of second-largest stablecoin after Tether. Coinbase and Circle jointly issue USDC.
New York Regulators Ban Issuance of BUSD
On February 12th, the New York Department of Financial Services (DFS) ordered Paxos – who had been issuing BUSD – to stop issuing it due to „unresolved issues“ in its relationship with Binance. As a result, Paxos was required to gradually redeem all existing tokens until its market cap reached zero.
Binance Downplays Involvement with Stablecoin
In response to this public order, Binance has been downplaying its involvement with the stablecoin and attempting to distance itself from Paxos and BUSD altogether – despite having ties that go beyond just the name (over 90% of all existing tokens are on their platform).
Coinbase Suspends Trading For Binance USD
On March 13th, Coinbase announced that they would suspend trading for Binance USD (BUSD) on their platform due to not meeting their listing standards upon review. Despite this announcement users can still withdraw their tokens at any time