BUSD Drops 8% After Paxos Announcing To Cease BUSD Stablecoins

Key Points:

• Binance’s BNB plummeted below $290, an 8% decline.
• Paxos indicated that it would cease issuing new BUSD stablecoins on February 21 due to directives from the New York Department of Financial Services.
• Ether dropped dramatically, plunging roughly 3.7%. Ripple’s XRP has been down 4% in the last day, Cardano’s ADA has dropped nearly 5%, and Polygon’s MATIC has dropped 9.4%

Regulatory issues drove cryptocurrency values lower once more, with Paxos and the New York Department of Financial Services going toe-to-toe and Binance USD (BUSD) suffering the consequences.

According to Coinmarkeycap statistics, Bitcoin was down 1.3% on the day and was trading at about $21,609 at the time of writing. The leading cryptocurrency by market cap plummeted when Paxos was ordered to stop issuing the BUSD stablecoin. It briefly dipped to $21,400 before regaining ground.

According to a PR Newswire, Paxos indicated that it would cease issuing new BUSD stablecoins on February 21 due to directives from the New York Department of Financial Services. The order was issued by the New York regulator “as a result of multiple unresolved issues connected to Paxos’ monitoring of its connection with Binance.”

It is important to note that the Department authorized Paxos to issue BUSD on the Ethereum blockchain. The Department has not authorized Binance-Peg BUSD on any blockchain, and Binance-Peg BUSD is not issued by Paxos. There is currently no restriction on the listing or exchange in New York of existing Paxos-issued BUSD by DFS-licensed entities. 

the regulator said in a statement

Following the news, ether dropped dramatically, plunging roughly 3.7%. Ripple’s XRP has down 4% in the last day, Cardano’s ADA has dropped nearly 5%, and Polygon’s MATIC has dropped 9.4%. Binance’s BNB plummeted below $290, an 8% decline.

Paxos tokens escaped massive sell-offs, while Pax gold was trading near $1,823, down 0.14% in the last 24 hours. The pax dollar was at parity with the US dollar, though it briefly fell below it.

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