Blockchain infrastructure platform Paxos officially announced that it shall stop issuing new Binance USD (BUSD) stablecoins amid increasing regulatory scrutiny by the New York Department of Financial Services (NYDFS).

The firm shall end its relationship with popular cryptocurrency exchange Binance, but re-itirated that all existing BUSD tokens will continue to be fully-backed and redeemable via the Paxos Trust Company until “at least February 2024”.

Paxos also added that this action “does not impact our ability to continue serving new or existing customers, our continued dedication to grow our staff or fund our business objectives. Paxos remains committed to becoming the global leader in the blockchain tokenization infrastructure”.

Sources:

https://cointelegraph.com/news/paxos-to-stop-minting-busd-stablecoins-for-binance

https://www.prnewswire.com/news-releases/paxos-will-halt-minting-new-busd-tokens-301744964.html

https://www.ft.com/content/8817e1a5-e788-4398-abdb-ae9d4f0e905f