The New York State Department of Financial Services (NYDFS) has launched an investigation into infrastructure company and stablecoin issuer Paxos.
According to Bloomberg, the reasons for the investigation have not been disclosed.
A spokesperson for the regulator has said:
"The department is in continuous contact with regulated entities to understand vulnerabilities and risks to consumers and the institutions themselves from crypto market volatility we are experiencing."
Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world
The company received in 2015 a BitLicense from the NYDFS which allows it to conduct crypto-related activities in the state of New York.
Last February 8, the company denied rumors it might withdraw its application for a full national fiat bank license from the Treasury Department's OCC.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange