The New York State Department of Financial Services (NYDFS) ordered cryptocurrency firm Paxos to stop issuing new Binance USD (BUSD) stablecoins.
The New York state regulator ordered Paxos to stop "as a result of
several unresolved issues related to Paxos’ oversight of its
relationship with Binance."
- Paxos said it will comply with the order.
- BUSD is Binance's dollar-pegged stablecoin, and each BUSD token is purportedly valued at one U.S. Dollar.
- Paxos' BUSD is distinct from Binance's BUSD, which is not under the direct regulatory oversight of NYDFS.
- Paxos is one of more than two dozen companies that have secured a BitLicense from NYDFS.
- Binance, one of the world's largest cryptocurrency exchanges, is not based in the U.S.
- Last
month, Coinbase agreed to pay a $50M fine and commit $50M to compliance
after NYDFS alleged that the crypto exchange failed to institute sufficient oversight into potential customer misconduct and money laundering.
