{"id":94443,"date":"2023-02-13T20:27:54","date_gmt":"2023-02-13T20:27:54","guid":{"rendered":"https:\/\/dripp.zone\/news\/index.php\/2023\/02\/13\/did-circle-tip-off-nydfs-on-binances-busd-irregularities-crypto-news\/"},"modified":"2023-02-13T20:27:56","modified_gmt":"2023-02-13T20:27:56","slug":"did-circle-tip-off-nydfs-on-binances-busd-irregularities-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/did-circle-tip-off-nydfs-on-binances-busd-irregularities-crypto-news\/","title":{"rendered":"Did Circle Tip Off NYDFS On Binance&#8217;s BUSD Irregularities?\n &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div>\n<p><iframe loading=\"lazy\" src=\"https:\/\/coingape.com\/usdc-issuer-circle-tipoff-nydfs-binance-busd\/about:blank\" width=\"320\" height=\"100\" marginwidth=\"0\" marginheight=\"0\" hspace=\"0\" vspace=\"0\" frameborder=\"0\" scrolling=\"no\" data-rocket-lazyload=\"fitvidscompatible\" data-lazy-src=\"https:\/\/servedbyadbutler.com\/adserve\/;ID=180936;size=320x100;setID=508113;type=iframe;click=CLICK_MACRO_PLACEHOLDER\"><br \/>\n<\/iframe><noscript><iframe loading=\"lazy\" src=\"https:\/\/servedbyadbutler.com\/adserve\/;ID=180936;size=320x100;setID=508113;type=iframe;click=CLICK_MACRO_PLACEHOLDER\" width=\"320\" height=\"100\" marginwidth=\"0\" marginheight=\"0\" hspace=\"0\" vspace=\"0\" frameborder=\"0\" scrolling=\"no\"><br \/>\n<\/iframe><\/noscript>\n<\/p>\n<p>Circle, the company behind the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/glossary\/usd-coin-usdc\/\">usdc<\/a> stablecoin and a competitor to Binance&#8217;s <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/tag\/busd\/\">USD<\/a>, notified New York&#8217;s financial watchdog in the fall of last year about irregularities that its team had uncovered from blockchain data.  The confidential information revealed that <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/companies\/binance\/\">Binance<\/a> did not store enough <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/glossary\/cryptocurrency\/\">cryptocurrencies<\/a> in its reserve to support the tokens it had already issued through Paxos.<\/p>\n<h2>War Of The Stablecoins<\/h2>\n<p>The news comes just hours after the regulator instructed Paxos, the leading regulated <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/glossary\/blockchain\/\">blockchain<\/a> and tokenization infrastructure platform, to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/new-york-regulator-orders-paxos-to-stop-creating-binance-busd\/\">stop issuing the Binance USD stablecoin<\/a>citing &#8220;several unresolved issues related to Paxos&#8221; and its undefined relationship with the Binance exchange regarding the branded stablecoin.<\/p>\n<p><!-- WP QUADS Content Ad Plugin v. 2.0.59 --><\/p>\n<p><em><strong>Read More:<\/strong> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/defi-lending-platforms\/\">Check Out The Top 10 DeFi Lending Platforms Of 2023<\/a><\/em><\/p>\n<p>Many speculate the tip-off by <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/tag\/circle\/\">circle<\/a> came after Binance reportedly stopped its support for USDC and instead started auto-converting them into BUSD late last year.  As a result of this action, Circle&#8217;s dominant share of the stablecoin market steadily shrank.  However, a similar attempt was made by <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/companies\/coinbase\/\">Coinbase<\/a> as well, which launched a zero-fee swap for retail customers to exchange USDT for USDC.  Coinbase worked with Circle in issuing the USDC stablecoin and is one of its founding members.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Switch to a trusted stablecoin: USD Coin (USDC).  Now convert Tether (USDT) to USDC with zero fees.<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/OObSqNWdpj\">https:\/\/t.co\/OObSqNWdpj<\/a><\/p>\n<p>Coinbase (@coinbase) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/coinbase\/status\/1600997059770736641?ref_src=twsrc%5Etfw\">December 8, 2022<\/a><\/p>\n<\/blockquote>\n<h2>Circle&#8217;s Major Concern on BUSD<\/h2>\n<p><!-- WP QUADS Content Ad Plugin v. 2.0.59 --><\/p>\n<p>What can be regarded as a \u201ccold war for stablecoins\u201d, the rationale behind the filing of a complaint to NYDFS against BUSD come under the pretense of a brewing rivalry that is present as an underlying current among market players.<\/p>\n<p>The primary concern raised by Circle was that Binance mints its own versions of third-party coins like <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/glossary\/bitcoin\/\">Bitcoin<\/a> and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/tag\/ethereum\/\">ether<\/a>, as well as Circle&#8217;s USDC and Paxos&#8217;s BUSD, in order to make those coins usable on blockchains other than the ones for which they were originally designed;  Such as the platform&#8217;s very own BNB Smart Chain.  The crux of the issue that Circle brought up was \u2014 these coins, which are referred to as Binance-peg or B-Tokens \u2014 were supposedly inconsistent with the 1:1 ratio as proclaimed by the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/glossary\/cryptocurrency\/\">crypto exchange<\/a>,<\/p>\n<p><!-- WP QUADS Content Ad Plugin v. 2.0.59 --><\/p>\n<p>In conjunction with this, the B-Token version of Circle&#8217;s USDC was also impacted.  according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-02-13\/circle-usdc-alerted-new-york-over-binance-peg-busd-issues?srnd=cryptocurrencies-v2\">reports<\/a>, on one instance, Binance had just $100 million in stored collateral to cover the massive $1.7 billion in Binance-peg USDC.  As things currently stand, Circle&#8217;s USDC has roughly $40.8 billion in circulation while BUSD has around $15.8 billion, according to CoinMarketCap&#8217;s <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/markets\">crypto market<\/a> tracker.<\/p>\n<p><em><strong>Also Read: <\/strong><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coingape.com\/defi-platform-has-frozen-its-aave-busd-reserves\/\">This DeFi Platform Has Frozen Its BUSD Reserves;  Which Ones Are Next?<\/a><\/em><\/p>\n<p><!-- WP QUADS Content Ad Plugin v. 2.0.59 --><\/p>\n<div class=\"TabDicA\">\n<div class=\"TBAcon \">\n<div class=\"authorFlip tabcS\" id=\"TabA138668\">\n<div class=\"authorBox\">\n<div class=\"author_Name\">\n<!--\n                                      \n\n<div class=\"getAuthoname\">\n                                          \n                                                                                 \n                                       <\/div>\n\n \n--><\/p>\n<p>Pratik has been a crypto evangelist since 2016 &#038; been through almost all that crypto has to offer.  Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now &#8211; he has seen it all.                         <\/p>\n<\/p><\/div>\n<div class=\"author_Image\">\n                                             <noscript><img loading=\"lazy\" alt=\"\" src=\"https:\/\/secure.gravatar.com\/avatar\/5cf0f64b0c7425fc4b6ea3fbbbde702c?s=200&#038;d=mm&#038;r=g\" srcset=\"https:\/\/secure.gravatar.com\/avatar\/5cf0f64b0c7425fc4b6ea3fbbbde702c?s=400&#038;d=mm&#038;r=g 2x\" class=\"avatar avatar-200 photo\" height=\"200\" width=\"200\" decoding=\"async\"\/><\/noscript>                                       <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"TabDesCm tabcS\" id=\"TabD138668\">\n<p>    The content presented may include the personal opinion of the author and is subject to market conditions.  Do your market research before investing in cryptocurrencies.  The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Circle, the company behind the usdc stablecoin and a competitor to Binance&#8217;s USD, notified New York&#8217;s financial watchdog in the fall of last year about irregularities that its team had uncovered from blockchain data. The confidential information revealed that Binance did not store enough cryptocurrencies in its reserve to support the tokens it had already [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":94444,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[188,183,185,186,187,184,189,150,182,190],"class_list":["post-94443","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-blockchain-tech","tag-blockchain-technology","tag-crypto-technology","tag-cryptocurrency-technology","tag-metaverse-technology","tag-nft-technology","tag-soul-bound-token","tag-tech","tag-technology","tag-token-technology"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/94443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=94443"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/94443\/revisions"}],"predecessor-version":[{"id":94445,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/94443\/revisions\/94445"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/94444"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=94443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=94443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=94443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}