Stablecoin Issuer Paxos to Pay Fine to New York for Binance Gaps

Stablecoin issuer Paxos reached a $48.5 million settlement with the New York Department of Financial Services over lapses in anti-money laundering adherence and other diligence failures in its partnership with the world’s biggest crypto exchange, Binance.

Paxos, which holds a limited purpose trust charter license from the department, agreed to pay a $26.5 million fine and to invest an additional $22 million in its compliance program. The regulator said it found deficiencies in the company’s transaction monitoring, and determined that it failed to conduct sufficient due diligence on Binance.

Paxos worked with Binance to market and distribute the Binance ...