Coindesk learns about the US authorities’ investigation into Paxos
The scope of the investigation and the nature of the charges are still unknown
10.02.2023 - 08:15
374
2 min
0
The New York Department of Financial Services (NYDFS) is investigating stablecoin issuer Paxos, CoinDesk has learned.
The full scope of the investigation is unclear. Paxos’ stablecoins include the Pax dollar (USDP) and Binance USD (BUSD), a Binance-branded stablecoin offered through a white-label service.
A NYDFS spokesperson said the agency could not comment on ongoing investigations.
Paxos has been in the news recently over rumors the U.S. Office of the Comptroller of the Currency – a federal bank regulator – may ask it to withdraw its application for a full banking charter. Paxos has denied these rumors.
However, an ongoing investigation by a state regulator suggests the company, which received a provisional bank charter from the OCC in 2021, is indeed under closer scrutiny than its peers may be.
Paxos also holds a virtual currency license – commonly referred to as BitLicenses – issued by NYDFS.
A Paxos spokesperson did not return a request for comment by press time.
NYDFS published stablecoin guidance in June, directing issuers to ensure their stablecoins be fully backed with assets segregated from the issuers’ funds and attested to regularly.
The guidance, which was issued in the wake of the collapse of the terraUSD/luna stablecoin ecosystem, is focused on asset-backed stablecoins. NYDFS had been working on the guidance since prior to the collapse, Superintendent Adrienne Harris told CoinDesk at the time.
This material is taken from the website coindesk.com.
Useful material?
Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Market
The company predicts that the rate of the first cryptocurrency will grow to $200 000 by the end of next year
Nov 11, 2024