Paxos issued a statement on Monday that it will end its relationship with Binance and for BUSD. The company confirmed that it will stop issuing the branded stablecoin BUSD on 21 February. The company further noted that existing tokens will remain fully-backed and redeemable through at least February 2024 for USD or Paxo’s Pax Dollar (USDP).
Paxos stated in the official announcement that the move is directed by the New York Department of Financial Services (NYDFS) and the company is working with the regulator.
The news follows an The Wall Street Journal report that The Securities and Exchange Commission (SEC) was planning to file a lawsuit against Paxos for violating investor protection laws.
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