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Your misconception is the exact reason SEC took this action: There are two different BUSDs, one by Paxos on the Ethereum netowrk and one is a BUSD based deriva
by Jommi 4y ago
Your misconception is the exact reason SEC took this action:
There are two different BUSDs, one by Paxos on the Ethereum netowrk and one is a BUSD based derivative on other chains such as BSC.
https://www.binance.com/en/blog/ecosystem/understanding-busd-and-binancepeg-busd-5526464425033159282 https://www.binance.com/en/blog/ecosystem/understanding-busd...
- lxgr 4y agoVery interesting, do you have any sources on this being the reason for SEC's actions? As far as I understand this, this is "just" wrapping/bridging – "just" in quotation marks because that often does carry counterparty risk if not done in a trustless way. Is the issue that Binance is acting as a secondary custodian (holding Ethereum BUSD, issuing BSC BUSD) for a Paxos-issued (holding USD, issuing Ethereum BUSD) asset, and that that activity is not regulated by the NYDFS?
- Jommi 4y agoI beleive the latest reports now include specification that the issue is with the Binance pegged BUSD. >Is the issue that Binance is acting as a secondary custodian (holding Ethereum BUSD, issuing BSC BUSD) for a Paxos-issued (holding USD, issuing Ethereum BUSD) asset, and that that activity is not regulated by the NYDFS? yes to make matters worse, AFAIK there is also revenue share beteween the two