According to market tracker CoinGecko, Binance’s stablecoin, Binance USD, has witnessed about $6 billion in withdrawals following a regulatory crackdown on the business that issues the token in the United States.
The New York Department of Financial Services (NYDFS) banned fresh BUSD issuance last month, citing unresolved difficulties with Binance’s partnership with Paxos, which minted the token for the world’s largest crypto exchange.
Paxos Trust Corporation, which issues Binance USD, announced on Feb. 13 that the US Securities and Exchange Commission (SEC) informed the business that the product should have been registered as a security and that the SEC is contemplating acting against the platform.
On the same day, New York’s chief financial regulator said in a consumer alert that it had ordered Paxos to stop creating the token.
Binance CEO Changpeng Zhao stated that the regulator’s decision indicated that the token’s market cap will drop over time.
The value of all Binance USD was about $10.5 billion on Wednesday, down from $16.1 billion on Feb. 13, market tracker CoinGecko.
The Financial Times reported on Wednesday that, according to data from blockchain analytics company Nansen, investors have sold more than $6 billion worth of the Binance-branded cryptocurrency in the previous month.
The announcement comes only two days after crypto exchange Coinbase said that BUSD will be delisted from its platform on March 13 due to failing to fulfil Coinbase’s internal listing requirements.