Paxos has recently announced that it will stop issuing Binance USD stablecoins effective February 21, 2023.
This decision was made due to the fact that the SEC has included this token in the category of unregistered securities. After that, the New York City Department of Financial Services (NYDFS) has banned Paxos from issuing a dollar-pegged stablecoin.
A lot of investors have started to massively withdraw capital from BUSD. In just a few hours, they took over $360 million from this digital asset.
According to Nansen platform data, as a result, the supply of Binance USD was reduced to $16.1 billion. Traders also started withdrawing funds from Binance.