Binance CEO Assures Safety of Funds after NYDFS Crackdown on Paxos

In the previous 24 hours, the value of Binance Coin (BUSD) has decreased by more than 5%. This has taken place after the reports regarding the order issued by the New York Department of Financial Services (NYDFS). The regulator has directed Paxos Trust (the entity credited for issuing BUSD) to cease the stablecoin’s issuance.

Binance Coin’s Price Slumps by 5%, Zhao Cautions about Further Decline

Changpeng Zhao, the chief executive officer of the crypto exchange Binance, commented on the issue in his Twitter posts. He confirmed that Paxos is responsible for issuing and redeeming the stablecoin BUSD. He added that the funds are safe. The CEO noted in one of its tweets that Paxos informed the crypto exchange regarding the order given by the NYDFS to stop minting more BUSD tokens.
The executive disclosed that the regulation of BUSD is carried out by the NYDFS while the complete management and ownership of the stablecoin are credited to Paxos. Zhao moved on to caution about the potential decrease in the price of the stablecoin with time as a result of the latest regulatory action. After receiving the order from the regulatory agency, Paxos declared that the platform will terminate its association with the crypto exchange for the stablecoin.

BUSD Issuer Paxos Declares Terminating the Stablecoin’s Issuance and Its Ties with Binance

In addition to this, on the 21st of February, the stablecoin issuer will stop issuing the token in line with the directive of the NYDFS. In its recent blog post, along with the aforementioned declaration, Paxos asserted that the platform has always maintained a 1:1 ratio of support by the USD-dominated reserves for the BUSD tokens that it has issued up till now. The respective reserves have been kept in separate accounts.

The company added that the BUSD tokens will still be completely backed as well as redeemable to the clients till 2024’s February. According to Paxos, the existing as well as the upcoming consumers will be permitted to extract their funds or convert the BUSD tokens in their possession to Pax Dollar (USDP). It is another stablecoin issued by Paxos and backed by the USD.

The platform stressed the importance of maintaining a resilient regulatory capital for the protection of the clients. Apart from that, it also emphasized a resilient corporate balance sheet. In the words of the firm, this would be assistive for it to accomplish its long-term objectives.

Bookmark (0)

Related Posts

Terraform Labs Co-Founder Daniel Shin Appears in Court for Interrogation

Terraform Labs co-founder Shin Hyun-Seong (Daniel Shin) was interrogated in court on March 30.
Shin was asked such questions as whether he had ever contacted colleagues abroad.
Co-founder Do Kwon was recently arrested, much to the joy of the victims of the Terra crash.

Bookmark (0)

Bitcoin Taps $29,000—Why BTC May Never Revisit Its Previous Lows

Bitcoin markets remain resilient amid U.S. war on crypto.
Halving narrative continues to strengthen.
BTC tapped a nine month high of $29,000.

Bookmark (0)

Jake Paul-endorsed SafeMoon gets hacked after introducing a bug in upgrade

A public burn function introduced in the latest upgrade allegedly allows users to burn tokens from other addresses.

Bookmark (0)

XRP price tags 10-month high — Can a 35% pullback be avoided?

A U.S. regulator called Bitcoin, Ether and Litecoin commodities in its court filing against Binance; it did not mention XRP anywhere.

Bookmark (0)

Did the SEC Target Spicer Jeffries for Being Crypto-Friendly?

SEC settles with Denver-based auditing firm.
Spicer Jeffries has ties with crypto firms and executives.
Gary Gensler requested a bigger budged to tackle crypto ‘misconduct.’

Bookmark (0)

Price analysis 3/29: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, SOL, DOT, LTC

Bitcoin and select altcoins are close to breaking out of their overhead resistance levels, indicating that bulls remain in control of the crypto market.

Bookmark (0)

Leave a Reply

Your email address will not be published. Required fields are marked *