Following the news that NY State Attorney General is suing cryptocurrency exchange Bitfinex and its affiliated stablecoin company Tether, other stablecoin issuers have rushed to distance themselves from the turmoil.
Among these companies is Paxos, whose CEO Charles Cascarilla told The Block that he was not surprised by the news.
“The industry is trading billions of dollars worth of cryptocurrencies daily, and relying on these exchanges and stablecoins that have no licensing, no registration, no oversight. It's bad for business and reckless in the long term,” said Cascarilla. “We knew this was coming - and we’ve been expecting the tide to turn. That’s why we built Paxos within the framework of regulation and oversight for both our PAX stablecoin and itBit exchange.”
PAX is one of the two U.S. dollar-pegged stablecoins approved by the New York Department of Financial Services (NYDFS).
Cascarilla also stressed the importance of government oversight of the cryptocurrency market.
“The news today reinforces our belief that regulation and oversight create confident and stability for the industry and Paxos is proud of its NYDFS-granted Trust charter, the highest form of regulation in the space,” said Cascarilla.