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Paxos Trust Company is Under Scrutiny: NYDFS Investigates

Published 2023-02-10, 12:00 p/m
© Reuters.  Paxos Trust Company is Under Scrutiny: NYDFS Investigates

Coin Edition -

  • Paxos Trust Company is under the scrutiny of the New York Department of Financial Services.
  • A person familiar with the matter told that the reason for the probe is still unclear.
  • NYDFS told that the department has been trying hard to protect consumers from crypto risks.

Paxos Trust Company, the New York-based financial institution designated with the issuance of Binance USD (BUSD) and Paxos Dollar (USDP) is under the scrutiny of the New York Department of Financial Services (NYDFS). As reported by a “person familiar with the matter” the reason for scrutiny is yet to be disclosed.

Recently, the company had been involved in scandals regarding the Federal Bank regulator, the US Office of the Comptroller of the Currency’s order to withdraw Paxos’s application for a full banking charter.

Despite rumors being solved in no time, it was understood from an ongoing investigation by the state regulator that a company owning a provisional bank charter from the OCC in 2021, would be under closer scrutiny than the other companies.

Significantly, in relation to the current probe on Paxos, an NYFDS told that the department is relentlessly putting effort into p…

The post Paxos Trust Company is Under Scrutiny: NYDFS Investigates appeared first on Coin Edition.

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