5M USDC Burned At Treasury; 10.3M USDC Transferred To Coinbase
- Paxos was ordered to stop minting BUSD by NYDFS.
- Coinbase plans to delist BUSD due to liquidity concerns and regulatory issues.
Blockchain and transaction tracker and analytics platform Whale Alert reported on March 2 that 50,000,000 USDC worth $50,043,042 USD was burned at USDC Treasury.
Simultaneously, the Twitter handle of the platform shared that 103,000,000 USDC valued at 103,001,664 USD was transferred from USDC Treasury to crypto exchange Coinbase.
Brian Armstrong, the CEO of Coinbase, announced that the exchange had chosen to halt trading of Binance USD (BUSD) due to concerns regarding the stablecoin’s liquidity. While initially, Coinbase had cited internal monitoring and review processes as the reason for delisting BUSD, subsequently, they did not provide any further specifics on the matter.
Armstrong later elaborated on the decision during an appearance on Bloomberg TV. He said:
The reason we did that was that Paxos, the issuer of BUSD, had been ordered to stop minting it, so we were concerned about liquidity issues for our customers.
As per reports, the New York State Department of Financial Services (NYDFS) directed Paxos to cease minting Binance-branded BUSD. Reportledy, this was due to unresolved concerns about Paxos’ oversight regarding its association with Binance. Additionally, it’s been reported that the Securities and Exchange Commission (SEC) intends to sue Paxos for selling BUSD as an unregistered security.
Moreover, Coinbase will delist Binance USD stablecoin from March 13, 2023, due to regulatory concerns as the token failed to meet its listing standards. Trading of BUSD will be suspended from Coinbase.com, Coinbase Pro, Coinbase Exchange, and Coinbase Prime.
Additionally, Paxos Trust, which operated BUSD, had recently announced it will stop minting the stablecoin. Coinbase made the decision based on its internal review process. The US SEC had issued a Wells Notice to Paxos on February 12, alleging a violation of investor protection law.