Crypto Firm Paxos to Stop Issuing Dollar-Pegged Binance Token
wsjOCT 2022
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Through its administration of the Binance stablecoin, Paxos failed to fulfill its obligation to conduct tailored, periodic risk assessments, leaving the token vulnerable to bad actors. There have been numerous problems with the way Paxos administered BUSD which is why it must stop issuing the stablecoin.
Paxos prioritizes the safety of its customers' assets above all and has already agreed to comply with the NYDFS regulation. Despite questions about its handling of the tokens, all Paxos-issued BUSD tokens are backed 1:1 with US dollar-denominated reserves.