Home Crypto News Paxos refutes financial institution constitution rejection rumors

Paxos refutes financial institution constitution rejection rumors

by Cryptoroz

Brokerage and stablecoin issuer Paxos stated it had not been denied a nationwide financial institution constitution from the Workplace of the Comptroller of the Foreign money (OCC).

On Feb. 7, rumors emerged that the OCC had denied Paxos its financial institution constitution — arising from the preliminary approval that Paxos obtained from the OCC, which was set to run out if Paxos didn’t open its chartered financial institution inside 18 months.

OCC 2021 preliminary approval

The OCC granted preliminary approval in April 2021, and it has now been 22 months since that date, making the opening 4 months overdue.

Paxos categorically denied all rumors in its Feb. 8 tweet. It stated that the OCC has not rejected its software for the constitution, nor has the regulator requested it to withdraw its software.

“Paxos continues to work constructively with the OCC.”

If Paxos obtains the constitution, it’s going to function as a federally-regulated digital asset financial institution alongside rivals Anchorage and Protego. It is going to be capable of function throughout the U.S. with out acquiring licenses in particular person states that might in any other case require one.

Rumors of NYDFS investigation emerge

Separate rumors emerged on Feb. 9 suggesting that Paxos faces a probe from the New York Division of Monetary Companies (NYDFS).

These rumors didn’t disclose the explanations for the supposed investigation and neither get together has publicly confirmed any probe.

Paxos is liable for the stablecoins Binance USD (BUSD) and the Pax Greenback (USDP). It additionally operates a crypto brokerage and powers PayPal’s crypto buying and selling capabilities.


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