Stablecoin issuer Paxos is being investigated by the New York Department of Financial Services, according to a CoinDesk report.
The news comes after rumors that Paxos was asked to withdraw an application with the U.S. Office of the Comptroller of the Currency, something the stablecoin issuer denies.
Paxos holds a virtual currency license that was issued by the New York Department of Financial Services. The regulator issued stablecoin guidance in June, following the Terra collapse, and told issuers that stablecoins must be backed by assets that are kept separate from the issuers’ funds.
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