Binance’s stablecoin, Binance USD, has experienced a significant outflow of almost $6 billion following a recent US regulatory crackdown on its issuer Paxos Trust Company. The US Securities and Exchange Commission (SEC) has previously alleged that the token was not registered as a security, and there was a possibility of action being taken against the issuer. New York’s chief financial regulator also ordered Paxos to stop creating the token, accusing the company of violating its obligations for risk assessments and due diligence checks on Binance and Binance USD customers.
Source: https://www.reuters.com
