With the forfeiture of BitLicense, which it held since 2018, over violation of cybersecurity regulations, Genesis Global Trading will no longer be able to provide digital asset service in New York.
PYUSD is being pitched as good for sending person-to-person payments, transferring to external wallets or funding purchases and users can convert PYUSD to other PayPal-supported digital assets.
The hearing by New York regulators examined the “transparency and security of the cryptocurrency industry and potential improvements as they relate to investor and consumer protection.”
First proposed in December, the new regulation was adopted this week and allows the New York Department of Financial Services to charge BitLicense holders for supervision—a practice common in finance.
The head of Nasdaq Digital Assets revealed the stock exchange wants to fill the gap left by 2022’s bankruptcies, starting with custody for BTC and ETH.
Signature Bank was under federal investigation for suspected money laundering by its crypto clients before the New York financial institution was taken over by state and federal regulators.
The Securities and Exchange Commission and the New York Department of Financial Services had opposed the deal, the latter alleging Voyager had operated an unlicensed and illegal virtual currency business in New York.
Voyager Digital announced that most of its creditors had voted in favor of its restructuring plan that will see Binance.US acquire around $1 billion in frozen assets.
Paxos CEO Charles Cascarilla said that the decision was not linked to the NYDFS order, clarifying that "The market has evolved, and the Binance relationship no longer aligns with our current strategic priorities."
Citing "unresolved issues" tied to its relationship with Binance, the NYDFS ordered Paxos to halt the minting of BUSD while users have until February 2024 to redeem their stablecoins.
NYDFS Superintendent Adrienne Harris said Robinhood Crypto failed to invest the proper resources and attention to develop and maintain a culture of compliance.
PayPal has been operating with a conditional BitLicense from the NYDFS since October 2020 but has now become fully licensed in a move the company says is very big for Web3.
