The New York Department of Financial Services is reportedly investigating Paxos Trust Company, the New York-based stablecoin issuer behind Binance USD (BUSD) and Paxos Dollar (USDP) (NYDFS). The exact reason for the investigation is unknown, but the department is attempting to protect consumers from the risks associated with investing in the cryptocurrency market.
Paxos recently denied rumors that the Office of the Comptroller of the Currency (OCC) in the United States may order the company to withdraw its application for a full banking charter, despite receiving preliminary approval in April 2021. In 2015, the NYDFS granted Paxos a “BitLicense,” which allows companies to conduct digital currency-related activities in the state of New York.
Stablecoin issuer Paxos reportedly probed by New York regulators
