• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: FTX Trust Sues Genesis To Recover $1 Billion Allegedly Misappropriated By SBF
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: FTX Trust Sues Genesis To Recover $1 Billion Allegedly Misappropriated By SBF
Paxos Faces Scrutiny From New York Regulators As They Gear Up To Protect Consumers

Paxos Faces Scrutiny From New York Regulators As They Gear Up To Protect Consumers

Beenish Khan
by Beenish Khan
2 years ago
·
Posted in Crypto News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

BUSD and USDP issuer Paxos have come under New York regulators’ radar. Although there is no specific reason for the investigation, reports revealed that the New York Department of Financial Services (NYDFS) launched a probe into Paxos’ operations.

Related Reading: Bank Of England Mentions Ripple In New CBDC Consultation Paper, Here’s Why

According to a recent report, someone familiar with this matter said the regulators are yet to clarify the reason behind the sudden investigation.

Why Is Paxos Under Investigation?

While speaking to Bloomberg, a spokesperson for NYDFS refused to deliver a specific comment regarding the ongoing investigation. But they said the probing is part of the department’s initiative to protect consumers from the risks in cryptocurrency investments.

The spokesperson claims that NYDFS wants to understand the vulnerabilities and risks consumers and institutions might face from crypto market volatility.

Paxos became the issuer of BUSD, a dollar-pegged stablecoin, after its partnership with Binance in September 2019. BUSD is the third-largest stablecoin by market capitalization. Paxos is also the issuer of USDP (Paxos Dollar), launched in 2018, and the developer of PAX Gold (PAXG), a gold-pegged Ethereum token. According to data from CoinGecko, USDP is currently the sixth-largest stablecoin by market cap.

Paxos has been in the cryptocurrency business since 2012. That was when the firm started and launched itBit, a crypto exchange. The firm obtained its BitLicense (a New York-issued license for crypto service providers) from NYDFS in 2015, granting it legal permission to carry out cryptocurrency-related operations in New York.

Earlier, rumors circulated that the US office of the Comptroller of the Currency (OCC) might ask Paxos to withdraw its application for a full banking charter even though it obtained preliminary approval in April 2021. 

However, on February 9, 2023, Paxos debunked these rumors, clarifying that it did not refuse any such order from the OCC. The firm also claimed its BUSD and USDP token reserves have 100% collateral in US dollars and Treasuries.

Paxos is seemingly a compliant firm since it has a BitLicense. So the news of its investigation by the NYDFS comes as a surprise in the crypto space.

The recent regulatory probing of the stablecoin issuer by the NYDFS may be linked with the regulator’s new regulatory guidance. However, it is still uncertain since the regulators, Binance, and Paxos have not commented on the matter.

Related Reading: XRP Lawyer Deaton Files Amicus To Join Another Ripple Lawsuit

NYDFS Previous Regulatory Activities In Cryptocurrency Space

Paxos’ investigation isn’t the first move in the crypto industry by the New York regulator. Over the past year, the NYDFS has launched investigations on some crypto firms, including Coinbase.

Bitcoin price chart from TradingView.com

 

Cryptocurrency market following bitcoin crash | Source: Crypto Total Market Cap on TradingView.com

On January 4, the regulator launched an enforcement action on Coinbase, alleging that the exchange had 100,000 alerts regarding suspicious user transactions. As such, the NYDFS mandated the crypto exchange to pay a $100 million fine for NY financial services and banking laws violations and compliance deficiencies.

Featured image from Pixabay and chart from Tradingview.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Beenish Khan

Beenish Khan

Follow

Full Profile

Related Posts

Next Crypto to Explode Live News Today: Timely Insights for Chart Sniffers (September 29)

Next Crypto to Explode Live News Today: Timely Insights for Chart Sniffers (September 29)

34 minutes ago
Bitcoin Hyper ($HYPER) Live News Today: Latest Insights for Bitcoin Maxis (September 30)

Bitcoin Hyper ($HYPER) Live News Today: Latest Insights for Bitcoin Maxis (September 30)

34 minutes ago
SWIFT to Launch a Blockchain-Based Ledger & Bring Attention to Crypto Tools Like Best Wallet

SWIFT to Launch a Blockchain-Based Ledger & Bring Attention to Crypto Tools Like Best Wallet

2 hours ago
Check Out Gemini’s Best Crypto to Buy as Bitcoin Returns to $114K.

Check Out Gemini’s Best Crypto to Buy as Bitcoin Returns to $114K

3 hours ago
Crypto

How A Moscow Group Used $8 Billion In Crypto To Evade Sanctions And Impact Moldova’s Elections

3 hours ago
Bitcoin And Ethereum Funds Shed $1.1 Billion While Solana Investment Products Gain $291 Million – Report

Bitcoin And Ethereum Funds Shed $1.1 Billion While Solana Investment Products Gain $291 Million – Report

4 hours ago

Premium Sponsors

Press Releases

  • 距離上線僅剩3周:Snorter代幣ICO融資突破 415...

    7 hours ago
  • 上線倒計時:僅剩25天可搶購 Snorter Bot 代幣

    4 days ago
  • 加密錢包掀起發幣熱潮 Best Wallet...

    6 days ago
  • Bitcoin Hyper

    ChatGPT предсказва следващата 1000x...

    1 week ago
  • Snorter надхвърли $4 милиона след...

    1 week ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.