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NYDFS orders Paxos to stop issuing BUSD due to supervision problems with Qian’an

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On February 14, the New York State Department of Financial Services (NYDFS) officially explained that: \”The department has ordered Paxos to stop casting the BU…

NYDFS orders Paxos to stop issuing BUSD due to supervision problems with Qianan

On February 14, the New York State Department of Financial Services (NYDFS) officially explained that: “The department has ordered Paxos to stop casting the BUSD issued by Paxos, because Paxos has several unresolved problems in the supervision of its relationship with Qian’an in respect of the BUSD issued by Paxos. In response, on February 13, 2023, Paxos informed the customer of its intention to end the BUSD relationship with Qian’an.”

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Interpretation of the news:


The New York State Department of Financial Services (NYDFS) issued an order on February 14, instructing Paxos to cease issuing BUSD, a stablecoin issued by Paxos. The decision was made due to “several unresolved problems” in the supervision of its relationship with Qian’an, a company involved in the issuance of BUSD.

It is unclear what specific issues led to the termination of this business relationship, but it is clear that there were concerns about the compliance and safety of BUSD. Paxos, for its part, informed customers on February 13 that it would be ending its relationship with Qian’an in regards to BUSD.

This move by the NYDFS is part of a wider effort to improve the regulatory environment for cryptocurrencies and stablecoins. Concerns about the safety and stability of these assets have been growing in recent years, as they become more popular and widely used. Regulators like the NYDFS are working to ensure that these assets conform to basic standards of safety and transparency, in order to protect consumers and promote confidence in the market.

While this move by the NYDFS may be seen as a setback for Paxos, it could ultimately be beneficial for the company in the long run. By addressing any concerns about its relationship with Qian’an, and taking steps to improve its supervision of BUSD, Paxos may be able to win back the trust of regulators and consumers alike. The company has already moved quickly to inform customers of its intentions to end the BUSD relationship with Qian’an, which demonstrates a commitment to transparency and openness.

In conclusion, the NYDFS’s decision to order Paxos to stop issuing BUSD is a sign of growing concern about the regulation of cryptocurrencies and stablecoins. While this move may be disruptive in the short term, it could ultimately lead to a safer and more stable market for these assets. It is important for regulators and companies like Paxos to work together to address any concerns about compliance and safety, in order to protect consumers and promote confidence in the market.

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