Breaking: Paxos reportedly ordered to stop issuing Binance USD

Published at: Feb. 13, 2023

The New York Department of Financial Services has reportedly ordered blockchain company Paxos Trust Co. to stop the issuance of dollar-pegged Binance USD (BUSD) stablecoin. 

The New York regulator's actions come shortlyafter the United States Securities and Exchange Commission issued a Wells Notice to Paxos — a letter the regulator uses to tell companies of planned enforcement action. The notice alleged that Binance USD is an unregistered security.

The NYDFS has reportedly asked Paxos to stop creating more of its BUSD token. Paxos will continue to manage redemptions of the product, according to a Binance statement.

This is a developing story, and further information will be added as it becomes available.

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