Binance Stablecoin Issuer Paxos To Stop Minting BUSD Token After NYDFS Guidance

The regulatory clampdown against the ailing crypto sector was turned up a notch in the US on Monday, adding a major stablecoin issuer and the world’s largest exchange Binance to the roster of digital-asset companies under fresh scrutiny.

The New York State Department of Financial Services said it had directed Paxos Trust Co. to stop issuing new tokens of crypto’s third largest stablecoin, a Binance-branded coin known as BUSD that has roughly $16 billion in circulation. The move targeted two core pillars of crypto — its most-traded type of tokens and the biggest exchange offering them — in one fell swoop, showing how watchdogs are keen to get tough on the sector after years of relative inaction.