{"id":550153,"date":"2023-02-10T08:42:03","date_gmt":"2023-02-10T05:42:03","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/stablecoin-issuer-paxos-reportedly-probed-by-new-york-regulators\/"},"modified":"2023-02-10T08:42:03","modified_gmt":"2023-02-10T05:42:03","slug":"stablecoin-issuer-paxos-reportedly-probed-by-new-york-regulators","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/stablecoin-issuer-paxos-reportedly-probed-by-new-york-regulators\/","title":{"rendered":"# Stablecoin issuer Paxos reportedly probed by New York regulators"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36ea6c46a25\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36ea6c46a25\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/stablecoin-issuer-paxos-reportedly-probed-by-new-york-regulators\/#%E2%80%9D_Stablecoin_issuer_Paxos_reportedly_probed_by_New_York_regulators_%E2%80%9C\" >&#8221; Stablecoin issuer Paxos reportedly probed by New York regulators &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Stablecoin_issuer_Paxos_reportedly_probed_by_New_York_regulators_%E2%80%9C\"><\/span>&#8221; Stablecoin issuer Paxos reportedly probed by New York regulators &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDIvZjdmNTY2ODQtNzdjNS00MzUxLTljMDMtY2FiNWU1OGVhMjE4LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-4bbf85c5>Paxos Trust Company \u2014 the New York-based stablecoin issuer behind Binance USD (BUSD)\u00a0and Paxos Dollar (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coindesk.com\/price\/paxos-dollar\/\">USDP<\/a>) \u2014 is reportedly being investigated by the New York Department of Financial Services (NYDFS). <\/p>\n<p>A \u201cperson familiar with the matter\u201d told Bloomberg in a Feb. 10 report that the exact motive behind the probe is currently unclear.<\/p>\n<p>An NYDFS spokesperson declined to comment on ongoing investigations but noted that the department is broadly working to protect consumers from risks associated with investing in the cryptocurrency market:<\/p>\n<blockquote><p>\u201cThe department is in continuous contact with regulated entities to understand vulnerabilities and risks to consumers and the institutions themselves from crypto market volatility we are experiencing.\u201d<\/p><\/blockquote>\n<p>Paxos has issued BUSD \u2014 a U.S. Dollar-collateralized stablecoin \u2014 since the firm struck a partnership with Binance in September 2019. It is the third largest stablecoin, with a market cap currently exceeding $16 billion.<\/p>\n<p>It is also the creator of the Paxos Dollar (USDP) which was launched in 2018. Today it is the sixth largest stablecoin with a market cap of about $875 billion, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/coins\/usdp\">according<\/a> to CoinGecko, and is the founder of PAX Gold (PAXG), a gold-backed-Ethereum token.<\/p>\n<p>The company is also behind digital asset exchange itBit, which it launched in 2012 alongside the founding of Paxos.<\/p>\n<p>The NYDFS issued Paxos with \u201cBitLicense\u201d in 2015, which legally permits companies to conduct digital currency-related activities in the state of New York.<\/p>\n<p>Paxos recently refuted <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/fortune.com\/crypto\/2023\/02\/08\/with-crypto-banking-on-the-brink-rumors-are-flying\/\">rumors<\/a> that the U.S. Office of the Comptroller of the Currency (OCC) may order Paxos to withdraw its <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lication for its full banking charter, despite the firm only receiving a preliminary approval in April, 2021.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">To clarify speculation: Paxos has not been asked to withdraw its application for a national trust bank charter from the OCC, nor has it been denied the charter. Paxos continues to work constructively with the OCC.<\/p>\n<p>\u2014 Paxos (@PaxosGlobal) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/PaxosGlobal\/status\/1623457250823258112?ref_src=twsrc%5Etfw\">February 8, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Paxos also claims on its website that its BUSD and USDP token reserves are backed wholly in U.S. Dollars and U.S.Treasuries. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>New York State issues guidance for banks seeking to engage in activities with crypto<\/em><\/strong><\/p>\n<p>If reports of the investigation are true, it wouldn\u2019t be the first one initiated by the NYDFS over the last year.<\/p>\n<p>Coinbase Global U.S. reached a $100 million settlement with the New York regulator on Jan. 4 after they found that they failed to look over about 100,000 suspicious transactions from customers who opened accounts without sufficient background checks.<\/p>\n<p>Shortly after Terra LUNA ecosystem and its failed algorithmic stablecoin TerraClassicUSD (USTC) collapsed in May, 2022, the NYDFS published stablecoin guidance report to ensure stablecoin issuers fully back their assets and attest regularly.<\/p>\n<p>Cointelegraph reached out to Paxos and Binance to comment on the matter but did not receive an im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te response. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/stablecoin-issuer-paxos-probed-by-new-york-regulators\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Stablecoin issuer Paxos reportedly probed by New York regulators &#8220; Paxos Trust Company \u2014 the New York-based stablecoin issuer behind Binance USD (BUSD)\u00a0and Paxos Dollar (USDP) \u2014 is reportedly being investigated by the New York Department of Financial Services (NYDFS). A \u201cperson familiar with the matter\u201d told Bloomberg in a Feb. 10 report that&#8230;<\/p>\n","protected":false},"author":1,"featured_media":550154,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/f7f56684-77c5-4351-9c03-cab5e58ea218.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,75014,138848,75238,76605,75493,117,3885,70934],"class_list":["post-550153","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-binance","tag-binance-usd","tag-financial-services","tag-paxos","tag-stablecoin","tag-business","tag-new-york","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/550153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=550153"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/550153\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/550154"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=550153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=550153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=550153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}