Monday's Market Update (Feb 13, 2023

14 Feb 2023 by rate3

On February 12, the New York Department of Financial Services (NYDFS) issued an order to Paxos, a digital asset trust company, to cease creating new Binance USD (BUSD) tokens. According to the regulator, there were several unresolved issues related to Paxos' oversight of its relationship with Binance, which necessitated this order. The order implies that Paxos is not currently in compliance with the regulatory requirements set forth by the NYDFS in terms of its oversight of its relationship with Binance.

The order means that Paxos will no longer be able to issue new BUSD tokens starting on February 21. Furthermore, it will also end its relationship with Binance for the branded BUSD stablecoin. Paxos had reported $16 billion in holdings, and this decision will undoubtedly have an impact on both the company and the market.

The market reaction to the news was mixed, with BTC falling during the day's session (open: 21572, close: 21662) while NASDAQ added 1.1 percent (open: 11759, close: 11891).