It has been understood that the complaints of USDC issuer Circle are behind Binance’s stablecoin Binance USD (BUSD) being targeted by official institutions.
According to an anonymous source who told Bloomberg USDC issuer Circle‘s warnings last spring Binance’s stablecoin BUSD and Paxos New York Department of Financial Services (NYDFS) put it on your radar. The Circle front, which allegedly filed a complaint with NYDFS, is for Binance’s own tokens. “mismanagement of reserves” gave reasons.
Circle also requested the relevant authorities to review the financial relationship of Binance and Paxos, justifying these claims with statements that Binance does not have sufficient reserves to support the tokens it issues.
This request made by Circle to the official authorities was made by Binance. USDC, USDP and TUSD It is estimated that the tokens come right after the decision to automatically convert to BUSD.
Clarifying the issue yesterday, NYDFS officials said that BUSD “smoothly and safely” He said it was not managed. Authorities conduct periodic risk assessment and due diligence on clients of BUSD issued by Binance and Paxos. that you have not fulfilled your obligation underlined.
Paxos announced on its official blog site on February 13 that, according to the decision of NYDFS, the company’s production of Binance USD (BUSD) produced on behalf of the crypto money exchange Binance. will be stopped had reported.