Competitor Circle Reported Paxos – BUSD Mistakes To New York Authorities

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Key Points: According to reports, Circle reported Paxos’ mistakes to New York authorities.
Paxos was ordered by the NYDFS to cease issuing stablecoins BUSD on February 13, and end its relationship with Binance. Paxos also agreed to comply.
Paxos was warned by the New York government because it failed “safely” to monitor its stablecoin.
The news that Paxos is under investigation by the US government, and that they are threatening to prosecute them for violations related the issuance of Binance’s stablecoin BUSD, has led to reports that Circle, Paxos’ rival, denounced it with New York’s watchdog. Bloomberg reported that Circle had filed a complaint with NYDFS on February 13, citing “some unresolved problems” regarding the oversight of BUSD as well as delays in providing information and evidence. Paxos was also told by the regulator that they only allowed Paxos to issue BUSD on Ethereum, but could not manage Binance’s conversion of part of this BUSD to a version on BNB Chain. Paxos responded to the request and announced the end of its cooperation with Binance. The stablecoin company claims that its product will always remain 1:1, backed with US dollars, and that customers will still be able to withdraw their money until February 2024. The US Office of the Comptroller of the Currency has also asked Paxos for a withdrawal of its application to a banking license. The SEC Wells announcement did not mention BUSD. There were no other allegations against Paxos.CEO CircleSome speculate Circle’s report of misconduct by rivals Paxos or BUSD to US authorities. This is due to Binance’s September 2022 policy, which converts all balances of stablecoins deposited on the exchange into BUSD. Tether (USDT) is not included in the SEC Wells announcement. This decision had an impact on USDC’s market share. However, USDC’s market share increased and peaked at November 2022. We encourage you to do your research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comFoxyCoincu NewsTags: # Cryptocurrencies#MarketsBlockchainBUSDCirclecryptoPaxosStablecoin