CZ assured that Binance would change various products to comply with regulatory decisions.
Paxos announced that BUSD tokens will not be generated after February 21. This follows the New York Department of Financial Services' directive (NYDFS).
In conformity with the judgements of the regulatory authority.
Finally, Binance CEO Changpeng Zhao (CZ) addressed the SEC's probe into Paxos in relation to the stablecoin Binance USD (BUSD). For the BUSD, Paxos, however, said that it will no longer collaborate with Binance.
Since it first broke, the crypto community has been discussing how the rumoured U.S. SEC probe into Paxos could affect stablecoins and the market. The CEO of Binance did, however, make some references to it.
If the court rejects the defence that BUSD is a security, it will have a huge impact on how the crypto market evolves, claims CZ. However, this will only be applicable to the nation in which the decision is made.
He emphasised that BUSD will continue to be handled by the largest cryptocurrency exchange in the world for the foreseeable future. As a result of this analysis, users will eventually switch from BUSD to other stablecoins. CZ promised that Binance would nevertheless alter some of its products in reaction to judgements.
One of the moves will be to stop using BUSD as the main trading pair. However, Binance will also be looking at other initiatives in light of the current regulatory uncertainties.
As of February 21, no new BUSD tokens will be created, according to a Paxos release. This will be done in accordance with the New York Department of Financial Services' directive (NYDFS). Paxos would continue to be in charge of the BUSD dollar reserves, it was asserted.
Paxos has stated that the BUSD would continue to be fully maintained and redeemed by all users until February 2024. Both new and current Paxos clients will have the option of redeeming monies in US dollars. Users can now convert their BUSD tokens into Pax Dollars (USDP).
