LONDON, Feb 13 (Reuters) - Paxos Trust Company, the firm behind Binance's stablecoin, was unable to administer the token in a "safe and sound" manner, a spokesperson for New York's chief financial regulator told Reuters on Monday.
The New York Department of Financial Services (NYDFS), which has ordered Paxos to stop issuing Binance USD, found that Paxos "violated its obligation to conduct tailored, periodic risk assessments and due diligence refreshes of Binance and Paxos-issued BUSD customers to prevent bad actors from using the platform," the NYDFS spokesperson said via email. (Reporting by Elizabeth Howcroft; editing by Tom Wilson)
