The New York Department of Financial Services (NYDFS) ordered crypto infrastructure firm Paxos to stop issuing the stablecoin Binance USD (BUSD), a Binance spokesperson told The Block.

"Paxos has informed us that they have been directed to cease minting new BUSD by the New York Department of Financial Services (NYDFS)," they said. "BUSD is a stablecoin wholly owned and managed by Paxos. As a result, BUSD market cap will only decrease over time. Paxos will continue to service the product, manage redemptions, and will follow-up with additional information as required."

(By Yogita Khatri)