Paxos Not To Issue Binance USD Stablecoin
The New York Department of Financial Services (NYDFS) ordered crypto infrastructure firm Paxos to stop issuing the stablecoin Binance USD (BUSD), a Binance spokesperson told.
“Paxos has informed us that they have been directed to cease minting new BUSD by the New York Department of Financial Services (NYDFS),” they said. “BUSD is a stablecoin wholly owned and managed by Paxos. As a result, BUSD market cap will only decrease over time. Paxos will continue to service the product, manage redemptions, and will follow-up with additional information as required.”
The decision comes after CoinDesk reported on 10th Feb that the NYDFS is looking into Paxos.
Paxos has announced that it will stop issuing new BUSD stablecoins on February 21. The company stated that it will honour BUSD redemptions “at least until February 2024.”
(With inputs from Shikha Singh)
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