The New York financial regulator will strengthen supervision over the crypto market


The New York State Department of Financial Services (NYDFS) has announced an update to its tools for monitoring illegal activities with digital assets among regulated entities.

“These tools will help us fight financial crime and fraud, hold regulated entities accountable, and further strengthen our national leadership in virtual currency oversight,” the NYDFS said.

The regulator did not disclose details. IN statement The updates are said to provide the Department with new opportunities to detect potential insider trading and market manipulation.

On February 10, the NYDFS initiated an investigation into Binance USD (BUSD) issuer Paxos. The regulator later ordered the firm to stop issuing the stablecoin.

The company said it will stop issuing the asset, but will continue to support buyback and conversion operations until at least February 2024. The Department explained its actions by insufficient security of the “stable coin”.

Threats also became known SEC sue Paxos for violating securities laws when issuing BUSD.

Recall that in 2022, Circle filed a complaint with the NYDFS regarding the quality of Binance USD reserve management, according to Bloomberg.

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