According to a New York regulator, Paxos cannot issue BUSD, but is this just false information?
Author:- Bruce
CZ argued it might be FUD despite certain well-known media outlets claiming Binance made a statement.
The New York Department of Financial Services apparently ordered Paxos to stop issuing the Binance USD (BUSD) stablecoin, according to the largest cryptocurrency exchange in the world, which has reportedly confessed as much.
The market cap of BUSD, the seventh-largest cryptocurrency, is above $16 billion.
paxos ceased minting new Busd.
The United States keeps up its pressure campaign against various cryptocurrency users. Paxos and Binance appear to be subject to regulatory oversight at this time after Kraken was a victim of the SEC last week and was forced to suspend its staking services.As a precaution against any legal actions, the SEC had sent a Wells notice to Paxos, alleging that the business was selling unregistered securities when it issued BUSD.Recent Wall Street Journal reporting asserted that Binance had acknowledged that the NYDFS had instructed Paxos Trust Co to stop releasing the stablecoin.According to a statement apparently sent to Bloomberg, “Paxos has told us that they have been directed to cease minting new BUSD by the New York State Department of Financial Services.”
Now comes new adversity from the USA. Because the New York-based financial authority NYDFS (New York Department of Financial Services) has prohibited Binance from issuing new coins of the US dollar-linked cryptocurrency Binance USD, as the standard writes.
The stablecoin was previously managed by New York-based crypto firm Paxos. The cooperation with Binance in this context has now been terminated. According to Binance boss Changpeng Zhao, Paxos has always assured that the stablecoin is covered.
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