Feb 10, 2023
NYDFS Investigates Paxos Trust Company
The New York Department of Financial Services (NYDFS) is reportedly investigating Paxos Trust Company, the stablecoin issuer behind Binance USD (BUSD) and Paxos Dollar (USDP). The news was first reported by Bloomberg on Feb. 10, citing an unnamed source familiar with the matter.
The NYDFS has declined to comment on the investigation, but noted that they are working to protect consumers from any risks associated with investing in the crypto market. Paxos is a BitLicense holder, which allows them to operate in the state of New York.
Paxos is the issuer of BUSD, a U.S. Dollar-collateralized stablecoin, and USDP, the sixth largest stablecoin with a market cap of about $875 billion according to CoinGecko. The firm is also the creator of PAX Gold (PAXG), a gold-backed-Ethereum token. Paxos operates the digital asset exchange itBit, which was founded in 2012.
Recently, there have been rumors that the U.S. Office of the Comptroller of the Currency (OCC) may order Paxos to withdraw its application for its full banking charter. The firm only received a preliminary approval in April 2021. Paxos released a statement on Twitter refuting these rumors, stating that they have not been asked to withdraw their application nor have they been denied the charter.
The NYDFS published a stablecoin guidance report in May 2022, shortly after the Terra LUNA ecosystem and its failed algorithmic stablecoin TerraClassicUSD (USTC) collapsed. The report outlines the measures that stablecoin issuers must take to ensure their assets are fully backed and that they are regularly attested.
In January 2021, Coinbase Global U.S. reached a $100 million settlement with the NYDFS after they failed to look over about 100,000 suspicious transactions from customers who opened accounts without sufficient background checks.
Cointelegraph reached out to Paxos and Binance to comment on the matter but did not receive an immediate response.
The web3 space is an ever-evolving and growing sector. With the introduction of Non-Fungible Tokens (NFTs) into the industry, the need for effective NFT marketing and promotion has become increasingly important. Companies such as Paxos Trust Company are at the forefront of this new wave of technology, offering innovative solutions to the challenges posed by the web3 space.
Paxos is a leader in the NFT marketing space, offering a variety of services to help clients promote and sell their NFTs. From traditional marketing campaigns to Twitter NFT marketing, Paxos is a full-service NFT marketing agency that can help clients reach their target audiences. The company also provides web3 agency services, helping clients navigate the intricacies of the web3 space.
Paxos’s suite of services has been instrumental in helping clients reach their goals in the web3 space. With the NYDFS investigation, it remains to be seen what the outcome will be and how it will affect Paxos’s ability to continue offering its services. Regardless, Paxos is sure to remain a leader in the NFT marketing and promotion space for years to come.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.