Regulatory crackdown on BUSD issuer Paxos not necessarily reflective of all stable cryptocurrencies according to Matrixport Research Director

02/14/2023 06:06 • NFT Newsflash • 174 views

On February 14, Markus Thielen, the research director of Matrixport, a crypto financial service company, believed that the recent regulatory crackdown on the BUSD issuer Paxos and the review of its Binance USD were not aimed at all stable currencies, which may be due to the lack of strict regulation of the issuer Paxos on tokens.

Matrixport Research Director: The regulatory crackdown on the BUSD issuer Paxos is not aimed at all stable currencies

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Markus Thielen, the research director of Matrixport, a crypto financial service company, has shared his thoughts on the recently publicized regulatory crackdown on Paxos, the issuer of BUSD, and its review of Binance USD. In his opinion, he believes that this regulatory action should not be seen as an indication of a lack of faith in all stable cryptocurrencies. Instead, Thielen reasons that the lack of strict regulation on the issuer Paxos could be the root cause of this regulatory action.

The crypto market has been characterized by a surge in the use and demand for stablecoins, with USDT (Tether) and BUSD being some of the most popular stablecoins. This has been attributed to the fact that they offer a stable store of value while still being linked to the often volatile cryptocurrency market, making them a reliable choice for crypto investors. However, this growing interest has also brought increased scrutiny and regulatory oversight.

Recently, Paxos, the issuer of BUSD, faced regulatory action and criticism for its apparent lack of regulation of its token, while Binance USD have also come under review. These actions have been interpreted by some as reflective of regulatory dissatisfaction with all stablecoins. However, Thielen disagrees, citing the potential lack of sufficient regulation in place regarding the BUSD issuer Paxos. He suggests that these regulatory measures against Paxos should not be taken as a negative overall statement on all stable cryptocurrencies.

In the words of Thielen, “The regulatory crackdown on BUSD issuer Paxos does not necessarily mean that regulators have lost their faith in all stablecoins”. Instead, he believes that as the use of Stablecoins increases, regulators are demanding stricter regulation from issuers of these coins to ensure their wider adoption and legitimacy.

In conclusion, there is increasing scrutiny and oversight into the use of stablecoins in the crypto market, such as the regulatory crackdown on Paxos and its BUSD token. While this may cause some concerns, Thielen’s opinion suggests that this regulatory action is not a reflection of all stable cryptocurrencies, but rather a commentary on the need for better regulation. In any case, it is positive to see that measures are being taken to legitimize and promote stable coins as a reliable investment option in the crypto market.

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