According to Markus Thilen, head of the research department of crypto financial service Matrixport, regulators are not targeting all stablecoins by cracking down on Binance USD issuer Paxos.
He has explained that the company may not have followed the BUSD asset strictly enough and has added that the issue itself “seems not to be related to stablecoins” in general.
He has added:
“Paxos has violated its obligation to conduct individual periodic risk assessments and due diligence of Binance and BUSD clients issued by the company.”
The NYDFS initiated on February 10 an investigation into Paxos and later ordered the firm to stop issuing the exchange-linked stablecoin.
