Paxos refutes bank charter rejection rumors

Brokerage and stablecoin issuer Paxos said it had not been denied a nationalist slope charter from the Office of the Comptroller of the Currency (OCC).

On Feb. 7, rumors emerged that the OCC had denied Paxos its slope charter — arising from the preliminary support that Paxos obtained from the OCC, which was acceptable to expire if Paxos did not unfastened its chartered slope wrong 18 months.

OCC 2021 preliminary approval

The OCC granted preliminary support successful April 2021, and it has present been 22 months since that date, making the opening 4 months overdue.

Paxos categorically denied each rumors successful its Feb. 8 tweet. It said that the OCC has not rejected its exertion for the charter, nor has the regulator asked it to retreat its application.

“Paxos continues to enactment constructively with the OCC.”

If Paxos obtains the charter, it volition run arsenic a federally-regulated integer plus slope alongside competitors Anchorage and Protego. It volition beryllium capable to run crossed the U.S. without obtaining licenses successful idiosyncratic states that would different necessitate one.

Rumors of NYDFS probe emerge

Separate rumors emerged connected Feb. 9 suggesting that Paxos faces a probe from the New York Department of Financial Services (NYDFS).

Those rumors did not disclose the reasons for the expected probe and neither enactment has publically confirmed immoderate probe.

Paxos is liable for the stablecoins Binance USD (BUSD) and the Pax Dollar (USDP). It besides operates a crypto brokerage and powers PayPal’s crypto trading capabilities.

The station Paxos refutes slope charter rejection rumors appeared archetypal connected CryptoSlate.