The crypto-currency market is facing a new challenge once again. It concerns the latest news about the large company Binance.
New York’s top financial regulator has ordered Paxos, the issuer of the Binance USD stablecoin (BUSD), to stop emitting the coins, without giving any details about the unresolved issues related to the oversight of the relationship between Paxos and Binance.
As a result, Paxos will stop issuing new BUSDs as of February 21, but will continue to hold reserves and redeem pre-existing BUSDs until at least February 2024. Binance’s managing director said that BUSD’s market capitalization will decline over time, but that Binance would continue to support BUSD for the foreseeable future.
The move comes as part of a bigger investigation by U.S. regulators into crypto-currencies and Binance. At this stage, the media does not yet have enough information regarding certain elements of the ongoing investigation.
Data from Nansen reveals that outflows of funds from Binance customers reached $788 million, with over 340 million BUSD burned and redeemed by Paxos Treasury. Very large numbers that once again demonstrate the volatility of the crypto-currency market and the impact of the economic environment on this market.
The course of the Binance (BNB) token saw a drop as soon as the information was released, with an estimated decline of $40 in less than 24 hours. However, most crypto-currencies saw a relatively small drop.
By the way, this is not the first investigation launched on Binance, the company has managed to prove the compliance of its operations on many occasions. A case to follow!
