NYDFS Fines Stablecoin Issuer Paxos $26.5M for Compliance Failures Tied to Binance’s BUSD

The New York Department of Financial Services (NYDFS) has imposed a substantial fine of $26.5 million on the stablecoin issuer Paxos, citing significant compliance failures related to its activities with Binance's BUSD. This penalty underscores the regulatory scrutiny that stablecoin operators face in maintaining robust compliance standards, especially in light of their involvement with the cryptocurrency exchange Binance and the broader implications for the financial ecosystem surrounding stablecoins. The NYDFS's action reflects ongoing efforts to ensure that all financial institutions adhere to laws and regulations designed to protect consumers and maintain market integrity. source: https://www.coindesk.com/policy/2025/08/07/nydfs-fines-stablecoin-issuer-paxos-usd26-5m-for-compliance-failures-tied-to-binance-s-busd