Paxos to stop minting BUSD

[ChillyMatthew]

GM crypto fam.

So, the NY Department of Financial Services has ordered Paxos to stop minting BUSD effectifly as of yesterday (Feb. 21st).

How big of an impact is the government's crackdown on crypto going to have on the crypto market's growth in the US?


source:

https://app.getresponse.com/view.html?x=a62b&m=BJvOSR&mc=9M&s=BtgXWnG&u=QcLhh&z=EJo0QoX&

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[o48o]

GM crypto fam.
So, the NY Department of Financial Services has ordered Paxos to stop minting BUSD effectifly as of yesterday (Feb. 21st).
How big of an impact is the government's crackdown on crypto going to have on the crypto market's growth in the US?

source:
https://app.getresponse.com/view.html?x=a62b&m=BJvOSR&mc=9M&s=BtgXWnG&u=QcLhh&z=EJo0QoX&

I am still assuming this claim about Paxos is true and they somehow messed up:

“violated its obligation to conduct tailored, periodic risk assessments and due diligence refreshes of Binance and Paxos-issued BUSD customers to prevent bad actors from using the platform.”

Because only other reason i see for this is that they would have done it out of spite. Because end result isn't keeping anyone safe. In fact Further attempts to drive down stablecoins could lead to catastrophy in markets and might hurt people more then FTX ever did. Dedollarisation would be an interesting thing to see but ultimately that could mean not only end of stablecoins, it would mean end of fiat pairs. And i don't have a clue how we would survive that.

[cryptoaddictchie]

How big of an impact is the government's crackdown on crypto going to have on the crypto market's growth in the US?

This could be very trending and hype. People will have some panic mode over Binance, but surely this will just cool off as we all knew how Binance is swift on handling this kind of legal matter.

Because only other reason i see for this is that they would have done it out of spite. Because end result isn't keeping anyone safe. In fact Further attempts to drive down stablecoins could lead to catastrophy in markets and might hurt people more then FTX ever did.

Maybe but these exchanges or issuers of stablecoin should be lenient as possible to avoid such fate of FTX.

[lumbanrang]

I also agree with what the Department of Financial Services is doing, because it seems that Paxos is too free in minting BUSD without including strong documents related to their backed. Of course the Department of Financial Services' actions have considered many things and most likely they have smelled the dirty practices of Paxos.

[Mr. Magkaisa]

   -   Well, I am not affected by what is happening in BUSD because I am not a holder of these stablecoins. Also, if I'm not mistaken, only the holders located in the U.S. will be affected.

Then there are many more options to use stablecoins in decentralized than in centralized exchange to be honest. or others will just switch platforms, it's that simple.

[hd49728]

So, the NY Department of Financial Services has ordered Paxos to stop minting BUSD effectifly as of yesterday (Feb. 21st).

How big of an impact is the government's crackdown on crypto going to have on the crypto market's growth in the US?

They will sort those things out in future. If Paxos won't close their company, they will find resolutions and agreement with the NY Department of Financial Services. We saw many cryptocurrency companies had to pay fined charges when they failed with lawsuits to continue their business like Tezos XTZ.

It's not the end if Paxos has enough money to pay fined charges and I believe they have it. However it is early to say Paxos will accept that accuse against them.

[yazher]

How big of an impact is the government's crackdown on crypto going to have on the crypto market's growth in the US?

They might gonna face some serious problems here because their exchanges were really doing well and they probably lose some investors along the way but I'm pretty sure that Binance will gonna take some real action about it and fix it as soon as possible because they know how dangerous it is when those people who create FUD will gonna intoxicate the mind of their investors and that would be total chaos for them especially they will gonna first withdraw all their assets from Binance at one time. So, Binance will need to take the necessary action to stop those things from happening and I'm sure this incident will not gonna be the reason for them to stop their service and platform.

[Pierre 2]

Well even if people underestimate this issue its actually big. It can create problems with supply of busd in near future. I feel cz probably seeks other options for Busd to do 1:1 but he didn't announce anything yet. I remember his last tweets about busd. He said they will keep supporting busd. That means funds are safe (for now). But I think decreasing competition is bad. I mean, like, we may need to trade only win usdt in future. Which is loss for investors. I loved to divide my portfolio between different stable coins.

[Kemarit]

GM crypto fam.

So, the NY Department of Financial Services has ordered Paxos to stop minting BUSD effectifly as of yesterday (Feb. 21st).

How big of an impact is the government's crackdown on crypto going to have on the crypto market's growth in the US?

This is no hype, if NY Department of Financial Services can ordered and be authoritative, then sooner or later other state regulatory body might follow suit as well.

But not sure if we can call it a crypto crackdown, maybe they just find something is not right on Paxos and BUSD that's they stop it. I haven't follow the news so not sure if Paxos will have to fight his case or just comply with the law.

So for me there is no effect on us and this is not a crackdown.

[Jackl87]

GM crypto fam.
So, the NY Department of Financial Services has ordered Paxos to stop minting BUSD effectifly as of yesterday (Feb. 21st).
How big of an impact is the government's crackdown on crypto going to have on the crypto market's growth in the US?

I don't really know how big the impact of this regulation will be to the crypto market as a whole, but i would guess that the impact will not be so devastating. I do think though that this is another blow for the whole BSC-chain. I mean like until a half a year ago or so it really seemed like Binance and the BSC chain will continue to grow and that they are ahead of every other crypto company and chain, but in the recent months that has significantly changed in my opinion.
The volume on the BSC-chain is going down, while other chains like Arbitrum are getting used more and more. I don't hold any BNB myself but i am not sure if this coin will see it's ATH ever again.

[SirLancelot]

GM crypto fam.

So, the NY Department of Financial Services has ordered Paxos to stop minting BUSD effectifly as of yesterday (Feb. 21st).

How big of an impact is the government's crackdown on crypto going to have on the crypto market's growth in the US?

This is no hype, if NY Department of Financial Services can ordered and be authoritative, then sooner or later other state regulatory body might follow suit as well.

But not sure if we can call it a crypto crackdown, maybe they just find something is not right on Paxos and BUSD that's they stop it. I haven't follow the news so not sure if Paxos will have to fight his case or just comply with the law.

So for me there is no effect on us and this is not a crackdown.

If others might follow then it can truly be considered as a hype. A crackdown means to restrict something so yeah it is. I click on the link provided by the OP but I can't find the post there about Paxos and BUSD so I search and find this website: > https://www.cnbc.com/2023/02/20/how-the-sec-and-paxos-busd-fight-could-impact-the-stablecoin-market.html.

It is said that SEC sees BUSD as a kind security and they mentioned something about registration. Maybe the issue can still be sorted out once the registration has been done so I think this isn't something that everyone should worry about. By the way, you can try to click on the link to have a better understanding because the post is a bit lengthy and I might missed some key information there.

[o48o]

-cut-
Maybe but these exchanges or issuers of stablecoin should be lenient as possible to avoid such fate of FTX.

I see zero similarities with FTX case. FTX problems weren't because of stable coins but because of ftx having no reserves and using FTT as reserves of all things. That seems in insane in hindshight. And it's not like everyone was losing money with FTX. Anyone who shorted FTT with leverage from the tweet of cz in binance made themselves rich.

[jrrsparkles]

GM crypto fam.

So, the NY Department of Financial Services has ordered Paxos to stop minting BUSD effectifly as of yesterday (Feb. 21st).

How big of an impact is the government's crackdown on crypto going to have on the crypto market's growth in the US?


source:

https://app.getresponse.com/view.html?x=a62b&m=BJvOSR&mc=9M&s=BtgXWnG&u=QcLhh&z=EJo0QoX&

Binance may have to prove their reserves for their tokens in circulation or they may face legal actions but it won't be any affect to the crypto market even to the Binance atleast in the long term because people prefers more USDT than anyother stable coin so in my opinion this is just a precaution by the SEC to make sure the assets are actually backed by as they claim.

Fall of a centralized project, scam, hack won't affect the cryptos in the long run.

[OcTradism]

They have to temporarily stop it because their license is for minting BUSD on ERC-20 chain, not on BEP-20 chain (Binance Smart Chain).

Binance started to burn BUSD on BEP-20 chain and for Paxos, I believe that they will cooperate with authorities and with their staffs in Legal & Compliance team to expand their license to BEP-20 chain. It's hard because of trade war between the USA. and China but I believe they will successfully to resolve it in future.

BUSD will come back to BEP-20 chain on Paxos but if Paxos fails, it's not the end of BUSD BEP-20. Binance can work with other stable coin companies to support and mint BUSD for them.

It is a war among stable coins and between stable coins vs coming CBDCs.

[tvplus006]

It is said that SEC sees BUSD as a kind security and they mentioned something about registration. Maybe the issue can still be sorted out once the registration has been done so I think this isn't something that everyone should worry about. By the way, you can try to click on the link to have a better understanding because the post is a bit lengthy and I might missed some key information there.

“If the SEC charges Paxos, any other issuer of stablecoins should register or prepare for a court fight with the SEC,” Renato Mariotti, a partner at law firm BCLP, told CNBC - https://www.cnbc.com/2023/02/20/how-the-sec-and-paxos-busd-fight-could-impact-the-stablecoin-market.html. In this case, if the SEC recognizes BUSD as a security, then such a decision in relation to other stablecoins is only a matter of time.