New York’s chief financial regulator has ordered Paxos, the company behind the stablecoin of major crypto exchange Binance, to stop issuing the token, Paxos and the regulator said in separate statements.
The Binance USD (BUSD) stablecoin, one of the world’s biggest, is issued and redeemed by New York-based Paxos Trust Company, both of which are regulated by the New York Department of Financial Services (NYDFS).
The token, which is designed to keep a steady value and is widely used by crypto traders at Binance, is backed by reserves of ordinary cash and US Treasuries, based on Paxos’ website.
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The NYDFS said in a statement that it ordered Paxos to stop minting BUSD “as a result of several unresolved issues related to Paxos’ oversight of its relationship with Binance through Paxos-issued BUSD.” The regulator’s statement did not give any details of what those issues were.
Binance CEO Changpeng Zhao wrote in a series of tweets earlier on Monday that the regulator’s decision…