The New York Department of Financial Services (NYDFS) has ordered Paxos Trust company to stop minting Binance exchange stablecoin (BUSD tokens). Paxos announced on February 13th that it will end its cooperation with Binance in regard to the issuance of the trading platform’s native token. According to a Cointelegraph report, the United States Security and Exchange Commission had previously notified Paxos that BUSD is an unregistered asset.
Paxos declared that the cessation of BUSD tokens will start on February 21st. The company also stated that BUSD holders have until February 2024 to redeem their BUSD tokens in US dollars or convert it to Paxos-issued assets such as Paxos dollars (USDP).
Binance CEO, CZ, also confirmed the news in a tweet, saying that Paxos issued and managed BUSD and the discontinuation of BUSD issuance will only decrease the BUSD market cap over time. According to his tweet, the news does not affect Binance’s relationship with regulators.
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