Key Points: Despite Paxos Trust Company being the Binance stablecoin issuer, Binance intends continue accepting it.
Binance CEO Changpeng Zhao “CZ” Zhao has made efforts to assure users that their funds are safe despite the planned enforcement actions. In a thread on Twitter, Zhao stated that BUSD is “wholly controlled and owned by Paxos” and that Paxos is subjected to NYDFS regulation.
Zhao stated that, despite the fact that some users may switch to other stablecoin tokens due to the enforcement action being taken, Binance would continue to support the stablecoin on its platform.
Paxos Trust Company is the Binance stablecoin issuer. However, Binance will continue to accept it despite the stop order from American regulators. The United States Securities and Exchange Commission sent Paxos a notice stating that BUSD was an unregistered security. Zhao, the CEO of Binance, tried to reassure users that their funds were safe despite the enforcement action. In a thread on Twitter, Zhao stated that BUSD is “wholly controlled and owned by Paxos” and that Paxos is subjected to NYDFS regulation. Zhao claims that Paxos will continue servicing BUSD and managing redemptions. It also provided guarantees about its reserves, which were subjected to independent audits. Binance’s CEO stated that the BUSD market cap would fall over time due to enforcement action. He also said that stablecoins that are not dependent on the US dollar would be looked into by the exchange.
“IF” BUSD is ruled a security by the courts, it can have profound effects on how the crypto market develops (or fails) in the jurisdictions where it’s ruled.
Zhao stated that evaluations of other initiatives in certain regions would be necessary to protect consumers from excessive harm. This is due to regulatory uncertainty in particular regions. In recent years, a number of token and service providers have been targeted by American officials. Ripple and the SEC are still in legal conflict over allegations XRP is an unregistered security. In exchange for $30 million in civil penalties, disgorgement, prejudgment interests, and civil penalties, Kraken, a crypto exchange, agreed to cease providing staking services in February 2023 to U.S. clients. The regulator claimed that Kraken failed to register its program to stake digital assets as a service. We encourage you to do your research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comAnnieCoincu NewsTags: BinanceBinance stablecoinBUSDPaxos Trust Company