The US regulators order the halt of the BUSD stablecoin issuance
US regulators have ordered the halt of BUSD stablecoin issuance by cryptocurrency company Paxos. The New York Department of Financial Services and the Security and Exchange Commission are involved in the decision, indicating that stablecoins need regulation. This action affects a stablecoin used on the Binance exchange, the world’s second-largest cryptocurrency exchange. The regulatory battle around stablecoins continues, with the matter set to be addressed at the G20 Finance Ministers meeting. Paxos is challenging the decision, but all BUSD deposits will stop in the meantime.
The US cryptocurrency company Paxos was ordered by the New York department of financial services (NYDFS) to stop the issuance of the BUSD stablecoin.
This action comes after Paxox received a notice from the US Security and Exchange Commission (SEC) that BUSD stablecoin is a financial security and that Paxos needs to register with the Commission. Stablecoins are cryptocurrencies that are pegged to the US dollar or other national currency. The regulatory battle around the stablecoins will continue as Paxos complained to the decision from the SEC. Meanwhile, all deposits of the BUSD will be halted. BUSD is a stablecoin used on a cryptocurrency exchange Binance as a stablecoin pegged to the US dollar. The Binance online exchange is the world’s second largest cryptocurrency exchange based. Binance announced that this will not affect their business.
Stablecoin regulation will be on the agenda of the G20 Finance Ministers meeting on February 24-25 in India. Regulation around this issue might need an overarching regulatory approach.