The financial regulator of the state of New York orders to stop the issuance of the stable cryptocurrency of Bitcoin
Crypto Trends & News

The financial regulator of the state of New York orders to stop the issuance of the stable cryptocurrency of Bitcoin

Paxos has confirmed that it will stop producing new cryptocurrency tokens starting February 21.

The financial regulator of the state of New York announced this Monday that it has ordered the firm Paxos to stop issuing BUSD, the stable cryptocurrency of Binance, the largest platform in the sector worldwide.

According to the New York Department of Financial Services, the company – which is under its supervision – has “unresolved issues” regarding its relationship with Binance, for whom it operates this product.

Paxos, in a statement, has confirmed that it will stop producing new tokens of this stable cryptocurrency starting February 21, which is fully backed with reserves denominated in US dollars and separate from other digital assets.

The New York-based firm will meanwhile continue to support and redeem this cryptocurrency until at least February 2024.

Meanwhile, Binance CEO Changpeng Zhao said in a series of tweets that he has received assurances from Paxos that all funds are safe and fully covered by reserves in banks, which have been repeatedly audited.

As he explained, Binance will continue to support BUSD in the future, although he hopes that users will progressively “migrate to other stablecoins.”

The value of this type of digital asset is usually directly linked to the dollar or another traditional asset and is an instrument that has gained popularity in recent years.

BUSD is considered the third largest cryptocurrency of this type, after Tether and USD Coins, with about $16 billion in circulation.

Today, after the news broke , its price has fallen compared to some of its rivals such as Tether, a sign that a number of users were converting their portfolios to these other assets.

Binance , which is the world’s largest cryptocurrency platform, was founded in China in 2017 and later moved its headquarters to the Cayman Islands, shortly before the Beijing government issued regulations to this market.

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