Crypto Updates

Powerful New York Regulator Targeting Top Stablecoin, Binance Confirms Paxos Will No Longer Mint BUSD

Most Dogecoin Holders Are in Profit While Majority of Shiba Inu Owners Remain Underwater: IntoTheBlock

A powerful regulator is directing New York-based crypto company Paxos to stop minting the stablecoin Binance USD (BUSD).

Binance CEO Changpeng Zhao says the New York Department of Financial Services (NYDFS) ordered Paxos, which issues and operates the stablecoin in a partnership with Binance, to freeze production.

Zhao says Paxos will continue to honor redemptions for the stablecoin, which is designed to be pegged to the US dollar.

“Paxos will continue to service the product, and manage redemptions.

Paxos also assured us the funds are safe, and fully covered by reserves in their banks, with their reserves audited many times by various audit firms already.”

Reports that the U.S. Securities and Exchange Commission plans to sue Paxos surfaced Monday, but have not been confirmed.

Zhao says he has no insight on the subject, but he believes a lawsuit of that caliber could lead to a watershed moment for the industry.

“IF BUSD is ruled as a security by the courts, it will have profound impacts on how the crypto industry will develop (or not develop) in the jurisdictions where it is ruled as such.

Binance will continue to support BUSD for the foreseeable future. We do foresee users migrating to other stablecoins over time. And we will make product adjustments accordingly. eg, move away from using BUSD as the main pair for trading, etc.

Given the ongoing regulatory uncertainty in certain markets, we will be reviewing other projects in those jurisdictions to ensure our users are insulated from any undue harm.”

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Ocelia_MG

Click Here to Read the Full Original Article at The Daily Hodl…