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

  • BUSD, issued by Paxos, is world’s third-largest stablecoin
  • New York regulator told Paxos to halt new coins, firm says
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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.