wordpress blog stats
Connect with us

Hi, what are you looking for?

, ,

Why are U.S. regulators asking Paxos to stop issuing new Binance-branded stable coins?

This can be a setback to Binance in terms of its growth prospects and holding investor confidence

Paxos, a blockchain and tokenisation infrastructure platform, announced that it will not be issuing new Binance USD (BUSD) from February 21 after an order from the New York Department of Financial Services (NYDFS), as per a statement released by the company. The order was issued because of “several unresolved issues” related to Paxos’ oversight of its relationship with Binance with respect to BUSD, according to a statement by the NYDFS. What is BUSD: It is a stable coin issued by Binance (in partnership with Paxos), backed by reserves of US dollar and US treasuries in the ratio of 1:1. It was launched in September 2019, and is the third largest stablecoin after Tether and USD Coin. What is a stablecoin: It is a digital currency that is pegged to a “stable” reserve asset like the U.S. dollar or gold, Coinbase explained. They intend to reduce volatility relative to unpegged cryptocurrencies like Bitcoin, it added. Why it matters: It is a significant development because BUSD is the seventh largest cryptocurrency, with more than $16 billion in circulation. It is a setback for Binance as it will affect its ability to grow, hold investor confidence, and corner a market share, especially in the United States. Binance’s CEO Changpeng Ziao tweeted that he foresees BUSD’s share decreasing over time. What did the NYDFS say: The department said that it was “monitoring Paxos closely” to verify that the company can facilitate redemptions in an orderly fashion. It also clarified that Paxos was authorised to…

Please subscribe/login to read the full story.
Written By

I cover several beats such as Crypto, Telecom, and OTT at MediaNama. I can be found loitering at my local theatre when I am off work consuming movies by the dozen.

Free Reads

News

Experts debate the efficacy of ex-ante regulation in India's fast-evolving digital market. Is preemptive control the answer?

News

Lacking plans about the use and regulation of artificial intelligence, use of drones, health stack, cybersecurity and Smart Cities, the manifesto does not have...

News

WhatsApp’s new policy lowers the age limit to 13, facing fierce criticism from child protection groups in Europe.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

NPCI CEO Dilip Asbe recently said that what is not written in regulations is a no-go for fintech entities. But following this advice could...

News

Notably, Indus Appstore will allow app developers to use third-party billing systems for in-app billing without having to pay any commission to Indus, a...

News

The existing commission-based model, which companies like Uber and Ola have used for a long time and still stick to, has received criticism from...

News

Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...

News

Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ