Coinbase

Coinbase will suspend Binance USD trading in mid-March due to regulatory concerns

Crypto exchange Coinbase will cease trading operations with the Binance-branded stablecoin, BUSD. Following the Securities and Exchange Commission's (SEC) Wells Notice against its issuer, Paxos, the digital asset has been heavily scrutinized. Paxos was accused by the SEC of violating investor protection laws when it issued Binance USD (BUSD).

According to the Commission, BUSD, like many other tokens in the crypto ecosystem, is secure. Therefore, Paxos allegedly needed to register the product with the SEC. The US regulator's legal action forced the crypto firm to cut ties with its long-term partner, crypto exchange Binance, and to cease issuing BUSD. Coinbase has become the first crypto exchange to cease trading in this digital asset. Users will be unable to buy or sell cryptocurrencies in exchange for the Binance-branded stablecoin beginning March 13, 2023. As the report confirmed, users can still withdraw their funds in BUSD.

Nonetheless, all transactions will be suspended across all Coinbase products, including Advanced and Simple trading, Pro, Exchange, and Prime. Coinbase is the first, but not the

last, crypto trading platform to de-list and suspend transactions with the Binance-branded digital asset. Changpeng "CZ" Zhao, CEO of crypto trading platform Binance, has already predicted that BUSD's market cap will "decrease over time." This decrease in market capitalization can only result in fewer use cases and fewer people using BUSD for regular trading activities. CZ stated at the time the following about the fate of the BUSD and the implications for the crypto industry as the U.S.

Bitcoin's drop from above US$25,000 to US$21,000 last week dragged down its profitability. Given this, Santiment observes that investors in these two digital assets are once again selling their coins at a loss. This will be the first time this has happened since December 2022, when the crypto market began the year 2023 with a significant rally. Bitcoin and Ethereum investors would profitably move their coins over the next two months as the prices of BTC and ETH rose above US$25,000 and US$1,700, respectively.

Sentiment data is backed up by data from IntoTheBlock, which shows that only 65% of Bitcoin investors are currently profiting. Similarly, the profitability of ETH investors has decreased, so 59% of investors are now profiting, while wallets in losses have increased to 37%. The continued decline in Bitcoin and Ethereum profitability may help to signal the bottom. This is made even more likely by the fact that the last time investors moved their assets at such a loss was in December, which led to a rally the following month.