New York Regulator to Scrutinize Stable Coin Issuer Paxos

• It’s unclear how extensive the probe really is.
• NYDFS spokesman stated that the organization was unable to comment on open cases.

New York regulators are reportedly investigating Paxos, the firm that issues the BUSD and USDP stablecoins. The Pax dollar (USDP) and Binance USD (BUSD), a stablecoin with the Binance name that is made available through a white-label service, are examples of Paxos’ stablecoins. Recent allegations about the federal bank regulator, the U.S. Office of the Comptroller of the Currency, brought Paxos into the news.

Paxos Holds Virtual Currency License

 According to certain sources , the regulator specifically asked the company to revoke its request for a complete bank charter. In New York, businesses that provide cryptocurrency services must get a BitLicense that comes with regulatory control. 2015 saw the New York regulator award Paxos a limited-purpose trust business charter. Along with the itBit digital asset market, the company also provides a virtual currency backed by gold.

In partnership with the biggest digital asset exchange in the world, Paxos, a New York-based firm, runs Binance’s BUSD. According to CoinGecko, the cryptocurrency is the third-largest stablecoin behind Tether and USD Coin with a market value of US$16 billion.

 According to reports , On its website, Paxos prioritizes consumer protection and states that all reserves for both of the stablecoins it issues are held in US Treasury bonds and cash. Although Paxos said last week that it is opening an engineering research. And development facility in Israel that will excel in security and cryptography.