New York Department of Financial Services: Binance-Peg BUSD issuance is unauthorized and not issued by Paxos

2023-02-14 09:54:08

Collection

ChainCatcher message, the New York Department of Financial Services has issued a notice regarding the BUSD issued by Paxos, stating that Paxos is a limited-purpose trust company supervised by the New York State Department of Financial Services. Paxos has now been ordered to stop minting the issued BUSD, as there are several unresolved issues regarding its oversight of the relationship with Binance concerning BUSD.

The New York Department of Financial Services authorized Paxos to issue BUSD on the Ethereum blockchain, but the department has not authorized Binance-Peg BUSD on any blockchain, and Binance-Peg BUSD is not issued by Paxos.

According to regulatory requirements, all stablecoins issued by regulated entities must be fully backed 1:1 by cash or cash equivalents. These reserves are regularly reviewed through third-party certification and independent internal and external audits. Compliance with the New York Department of Financial Services' stablecoin guidelines and customized regulatory agreements is also part of the review process. (Source link)

ChainCatcher reminds readers to view blockchain rationally, enhance risk awareness, and be cautious of various virtual token issuances and speculations. All content on this site is solely market information or related party opinions, and does not constitute any form of investment advice. If you find sensitive information in the content, please click "Report", and we will handle it promptly.