New York regulators are investigating stablecoin issuer Paxos

ChainCatcher news, the New York Department of Financial Services (NYDFS) is investigating the stablecoin issuer Paxos.

Reportedly, Paxos's stablecoins include Pax dollar (USDP) and Binance USD (BUSD). Paxos recently made headlines due to rumors that the Office of the Comptroller of the Currency (OCC) might require it to withdraw its full banking charter application. Paxos has denied these rumors.

However, an investigation by state regulators indicates that this company, which obtained a temporary banking charter from the OCC in 2021, is indeed under stricter scrutiny than its peers. Additionally, Paxos also holds a virtual currency license issued by NYDFS—BitLicenses. (source link)