The company’s stablecoin Paxos, Pax Dollar (USDP), offered in Brazil by applications such as Nubank, Mercado Pago and PicPay, may be involved in investigations in a court in New York (USA). The same company also issues Binance USD. According to information circulating in the media, the investigation is carried out by the New York Department of Financial Services (NYDFS). Although the company is regulated in the United States, the possible verification involves knowing the product offers by the company.
Stablecoin offered on Nubank, Mercado Pago and PicPay undergoes investigation in the US
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Thanks! You will now receive our Newsletter. According to the Coindesk portal, stablecoins issued by Paxos may be in the midst of investigations in the US. In addition to Pax Dollar, it is also worth remembering that this company issues Binance USD (BUSD). However, it is still unclear publicly what the NYDFS has been looking into regarding the issuance of the stablecoins. When contacted by the report, members of the public body declined to comment on the matter. In Brazil, for example, the Pax Dollar currency is listed in Paxos partner apps, such as Nubank, Mercado Pago and PicPay. Publicly, none of the companies commented on the matter. In 2022, the cryptocurrency market saw the fall of the stablecoin TerraUSD (UST), which caused damage to investors. Thus, the stablecoin market undergoes a global risk assessment, with regulators keeping an eye on industry launches. One of the demands that could come to the industry involves companies that issue stablecoins keeping customer assets segregated from the company. Furthermore, a pressure for algorithmic stablecoins not to operate in the market is also felt globally.
Paxos calls possible problems with the OCC a rumor
As a regulated company, Paxos has come up in the media with another issue in addition to the investigation into its stablecoin offering. This is because, according to rumors, Paxos could soon lose its license to operate a bank in the US, which it obtained in April 2021. In a note via Twitter last Wednesday (8), Paxos denied problems with the currency controller in the US, the Office of the Comptroller of the Currency (OCC). This is a public body linked to the US Treasury.
“To clarify the speculations: Paxos was not asked to withdraw its application for a national trust bank license from the OCC, nor was the license denied. Paxos continues to work constructively with the OCC.”
To clarify speculation: Paxos has not been asked to withdraw its application for a national trust bank charter from the OCC, nor has it been denied the charter. Paxos continues to work constructively with the OCC. — Paxos (@PaxosGlobal) February 8, 2023
On what he called speculation, the company Paxos continues to operate normally in all countries where it provides its services. In any case, an expert recently declared that the US is trying to ban the cryptocurrency market, even if without much fanfare.
