Stablecoin issuer Paxos is under investigation by New York financial regulator: CoinDesk

The New York Department of Financial Services is reportedly investigating stablecoin issuer Paxos, according to a report by CoinDesk Thursday. The scope of the investigation remains unclear, according to the report. A representative for NYDFS said the agency cannot comment on ongoing investigations. It adds to the regulatory scrutiny the crypto industry is facing, as digital asset exchange Kraken on Thursday agreed to halt its staking program and pay a $30 million fine to settle charges brought by the U.S. Securities and Exchange Commission. Stablecoins refers to cryptocurrencies whose prices are pegged with other assets, often fiat currencies such as U.S. dollars. Stablecoins issued by Paxos include the Pax Dollar and Binance USD, which is branded by the world’s largest crypto exchange Binance. A spokesperson for Paxos didn’t immediately respond to a request seeking comments.