Paxos Trust Company, a significant player in the cryptocurrency issuance space, has finalized a settlement agreement with the New York Department of Financial Services (NYDFS), the state’s primary financial watchdog.
The agreement requires Paxos to pay a $48.5 million penalty. This settlement resolves the regulator’s concerns regarding Paxos’s operations.
The NYDFS emphasized the importance of heightened oversight and compliance standards to ensure stability and trust within the crypto asset market, particularly concerning entities it charters. The regulator highlights that Paxos Trust operates under its supervision.
This action underscores the NYDFS’s continued commitment to enforcing its regulatory framework governing cryptocurrency firms operating within New York.