Binance CEO CZ officially talked about the regulatory hurdles going on with the stablecoin issuer company Paxos over BUSD stablecoin offerings.
Binance stablecoin BUSD is a main crypto trade pair on the Binance Crypto exchange. Paxos is a back-end company behind BUSD stablecoin. This stablecoin company is fully regulated in New York by the New York Department of Financial Services (NYDFS).
On 13 Feb 2023, Changpeng Zhao (CZ), CEO & founder of Binance exchange, took to Twitter to share his future decision on the ongoing legal hurdles with BUSD stablecoin.
CZ confirmed that Paxos now decided to stop minting BUSD stablecoin in the supply, on behalf of an order from the NYDFS agency.
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2/ We were informed by Paxos they have been directed to cease minting new BUSD by the New York Department of Financial Services (NYDFS).
Paxos is regulated by NYDFS.
BUSD is a stablecoin wholly owned and managed by Paxos.
— CZ
Binance (@cz_binance) February 13, 2023
Binance CEO noted that Paxos will continuously provide its services in the crypto sector and also BUSD holders don’t need to take any tension because Paxos reserves are better, as audited by many independent reputed auditors.
On the United States Securities and Exchange Commission (SEC) vs Paxos lawsuit, CZ said that he don’t know about it because officially Paxos or SEC didn’t reveal anything about this lawsuit.
Further CZ said that if SEC will prove BUSD as a security then it will bring a new path for future growth of the crypto sector.
In the last, the Binance founder assured that Binance will always support BUSD stablecoin users and help to migrate the customers to shift on other stablecoins.
7/ Binance will continue to support BUSD for the foreseeable future. We do foresee users migrating to other stablecoins over time. And we will make product adjustments accordingly. eg, move away from using BUSD as the main pair for trading, etc.
— CZ
On 13 Feb Paxos team also confirmed that BUSD stablecoin is fully backed by 1:1 US dollar and it was always safe for the crypto Investors, so BUSD will not fall under the federal securities law and also Paxos team does not agree with the SEC claim over the security nature of BUSD stablecoin.
Paxos confirmed that it will officially talk on this matter with the SEC agency.
Read also: Crypto company EminiFX CEO pleads guilty to a $248M fraud
New York watchdog orders Paxos to stop BUSD stablecoin minting
https://bitcoinik.com/new-york-watchdog-orders-paxos-to-stop-busd-stablecoin-minting/feed/
https://bitcoinik.com/new-york-watchdog-orders-paxos-to-stop-busd-stablecoin-minting/feed/
