Paxos, a crypto firm that issues the Binance USD stablecoin has been ordered to stop issuing the coin, Wall Street Journal reports.
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Paxos Ordered to Stop Issuing BUSD
The New York Department of Financial Services (NYDFS) has reportedly directed Paxos, the issuer of one the largest stablecoins (BUSD) in the crypto market Paxos to stop issuing the coin as regulatory clampdown continues.
“Paxos has informed us that they have been directed to cease minting new BUSD by the New York Department of Financial Services (NYDFS),” Binance said in a statement.
Therefore, Paxos will stop issuing the token, which may lead to a drop in the BUSD market as time passes, Paxos will however continue to service the product, manage redemptions and as well follow up with additional when needed, Binance added.
The news came days after the US regulators reportedly launched an investigation into the blockchain firm Paxos. Also, a recent report suggested that the US Securities and Exchange Commission is looking to sue Paxos over BUSD token, alleging that it is unregistered security.
BUSD is the third-largest stablecoin in the crypto market with a market cap of over $746 million, according to CoinMarketCap.
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