As the government crackdown on the cryptocurrency industry grows, New York officials ordered a business to cease creating one of the largest dollar-pegged coins.

Paxos Trust Co., which creates and sells Binance's dollar-pegged cryptocurrency, was ordered by the New York Department of Financial Services to halt producing new BUSD tokens, according to a statement from Binance. The cryptocurrency exchange also stated that Paxos will continue to oversee product redemptions.

A stablecoin backed one-to-one by dollars is called BUSD, sometimes known as Binance USD. It was introduced in 2019 by Binance and Paxos, who claimed the stablecoin has received regulatory approval from New York's financial watchdog.

According to CoinDesk statistics, Binance USD marginally deviated from its dollar peg on Monday morning, trading as low as 98 U.S. cents. A hint that traders were switching their holdings to tether.

According to CoinDesk, BNB, the native coin of Binance, dropped more than 10% on Monday.

“Traders holding BUSD are looking for the quickest way to exit,”

said Clara Medalie, research director at crypto data firm Kaiko. Tether is one of the few competing stablecoins that Binance has listed, making it simpler to purchase or sell against the US dollar.

Great! You’ve successfully signed up.
Welcome back! You've successfully signed in.
You've successfully subscribed to Coin Aquarium.
Your link has expired.
Success! Check your email for magic link to sign-in.
Success! Your billing info has been updated.
Your billing was not updated.