NYDFS Orders Paxos to Stop Issuing BUSD

02/14/2023 01:27 • AI Insights • 89 views

On February 14, the New York State Department of Financial Services (NYDFS) officially explained that: “The department has ordered Paxos to stop casting the BUSD issued by Paxos, because Paxos has several unresolved problems in the supervision of its relationship with Qian’an in respect of the BUSD issued by Paxos. In response, on February 13, 2023, Paxos informed the customer of its intention to end the BUSD relationship with Qian’an.”

New York Financial Services Department: Binance-Peg BUSD not yet authorized

Analysis based on this information:

In a statement released on February 14, the New York State Department of Financial Services (NYDFS) announced that it has ordered Paxos to halt the issuance of the BUSD, a stablecoin issued by Paxos, due to unresolved problems in its relationship with Qian’an regarding the supervision of the BUSD. The NYDFS is the governing body responsible for regulating financial services companies in the state of New York, and its decision carries significant weight in the industry.

Paxos, a blockchain infrastructure company, has been working with Qian’an, a Chinese firm, to issue BUSD, which is pegged to the US dollar to ensure stability. The BUSD has been gaining traction among cryptocurrency users as a reliable digital asset. However, the NYDFS has expressed concerns about Paxos’ supervision of the BUSD issued in partnership with Qian’an.

The details of the issues between Paxos and Qian’an are yet to be made public, but the NYDFS has taken swift action. In response to the order, Paxos has informed its customers of its intention to end the BUSD relationship with Qian’an. This decision will affect the existing BUSD issued in partnership with Qian’an and could affect future issuances of the stablecoin.

The NYDFS has been proactive in regulating the cryptocurrency industry in New York, a hub for fintech innovation. The department has been known to issue stringent regulations on digital assets to ensure the security of consumers and prevent fraudulent activities. The decision to halt the issuance of BUSD by Paxos is another example of the NYDFS taking swift action to protect consumers.

In conclusion, the NYDFS has ordered Paxos to stop the issuance of the BUSD due to unresolved issues in its relationship with Qian’an regarding the supervision of the stablecoin. The action taken by the NYDFS highlights the department’s commitment to regulating the cryptocurrency industry and protecting consumers. Paxos’ decision to end its BUSD relationship with Qian’an will have implications, and the details of the issue between the two firms will be eagerly awaited.

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/02/14/nydfs-orders-paxos-to-stop-issuing-busd/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

NYDFS Orders Paxos to Stop Issuing BUSD

New York Financial Services Department: Binance-Peg BUSD not yet authorized

Recommended articles