Вloomberg: The issuer of the Circle Steabblecoins has passed the competitor to Paxos-Binance to the authorities – Bits Media

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Вloomberg: Эмитент стейблкоинов Circle сдал конкурента Paxos-Binance властям - Bits Media

Vloomberg reports, that a few months before the ban on the emission of Paxos-Binance stabilcoins, Circle sent a complaint about a competitor to regulatory authorities.

At the end 2022 year, one of the largest issuers of the Circle Internet Financial stabricons filed a complaint with Department of Financial Services New York (NYDFS) на Paxos Trust, which regulates the activities of issuers of stablcoins in the state of New York. Circle warned the observation authority about problems, discovered by her team, And claimed, that Binance and Paxos do not have sufficient reserves to ensure support for Binance USD stabelcoins (Busd).

Part of the crypto community suggests, What to start active actions Circle was forced by Binance discriminatory policy, which introduced
in 2022 a year forced autoconstrictor of USD Coin (USDC) Busd supposedly for the purpose of increasing the liquidity and efficiency of capital use.

Binance solution painfully hit the competitor. As a result of Circle, stablecoin issuer USDC, reported, that against the background of the FTX default and the USDC auto -conference in Busd on the Binance exchange, The loss of the company amounted to about $3 billion.

After checking Circle's complaint against Paxos-Binance on Monday, 13 february, Nydfs ordered Paxos to stop the release of BUSD stabilcoins and interaction with Binance. The regulator drew attention to Paxos, that the current license only provided for the release of Busd on the Ethereum blockchain and did not imply BUSD conversion into the BNB Chain version.

Paxos complied with the regulator requirement, And also announced
On the termination of cooperation with Binance and the release of new Busd. From the date of execution of the order to terminate the use of Binance Steabelcoins (Busd) Paxos burned more 400 million BUSD.

United States Securities and Exchange Commission (SEC) I sued Paxos, affirming, that Stablecoin Busd is an unregistered security. US Office Office (OCC) also asked Paxos to withdraw
application for a bank license.