Binance CEO: BUSD is wholly owned and managed by Paxos
Changpeng Zhao believes that after the ban on the issuance of BUSD, users will switch to other assets
13.02.2023 - 11:30
482
2 min
0
What’s new? Changpeng Zhao, the head of the Binance cryptocurrency exchange, commented on the decision to ban the issuance of new Binance USD (BUSD) stablecoins by Paxos, made by the New York Department of Financial Services (NYDFS). Zhao said the asset is wholly owned and managed by Paxos, and the company will continue to service all operations with it. In turn, Binance will also support BUSD for the foreseeable future.
#BUSD. A thread. 1/8In summary, BUSD is issued and redeemed by Paxos. And funds are #SAFU! — CZ 🔶 Binance (@cz_binance) February" class="redactor-linkify-object">https://twitter.com/cz_binance/status/162506748436... 13, 2023
The BUSD stablecoin issued by Paxos under the Binance crypto exchange brand is the third largest in the crypto market after USDT and USDC and ranks seventh in the overall cryptocurrency ranking with a capitalization of $16,16 billion.
What else did Zhao say? Binance has been informed of the NYDFS ban on the issuance of new stablecoins. The exchange will continue to support the asset, but its market capitalization will decrease and users will move to other stablecoins. According to Zhao, user funds remain safe and are fully covered by reserves. Paxos will be responsible for servicing BUSD and managing redemptions.
Zhao also commented on the US Securities and Exchange Commission (SEC) investigation into BUSD. The regulator believes that the asset is an unregistered security and intends to hold Paxos liable for its issuance and violation of investor protection laws. Binance’s CEO noted that he did not know the details of the case except for the information published in the media. In his opinion, recognizing BUSD as a security “will have profound impacts on how the crypto industry will develop (or not develop).”
CoinDesk wrote about the NYDFS investigation into Paxos last week. Earlier, analyst Colin Wu reported that the US Treasury Department urged Paxos to withdraw its application for a banking license, but the company denied those rumors.
Useful material?
Market
According to the founder of TRON, the leading US crypto exchange asked for several hundred million dollars for the listing of TRX
Nov 4, 2024
Incidents
The company conducted fictitious trading for six years to inflate the trading volume of tokens of several companies, receiving payment for these services
Nov 1, 2024
Market
1,5 million addresses have already left applications
Oct 31, 2024
Business
The company began investing in bitcoin in 2020, and since then, the value of its securities has risen by 1700%
Oct 30, 2024
Mining
The Deputy Energy Minister explained that in deficit regions, it is impossible to allocate large capacities for industry enterprises until 2030
Oct 30, 2024
Market
Customers will also be able to withdraw funds to bank accounts using cards
Oct 30, 2024