The New York State Department of Financial Services (NYDFS) has just announced it has updated one of its tools for monitoring illegal activities with digital assets among regulated entities.
According to the statement:
"These tools will help us combat financial crime and fraud, hold regulated entities accountable, and further strengthen our national leadership in virtual currency supervision."
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The regulator has not disclosed further details. According to the statement, the updates will provide the regulator with new opportunities to identify potential insider trading and market manipulation.
The NYDFS initiated an investigation into Binance USD (BUSD) issuer Paxos last February 10. Subsequently, the regulator ordered the company to stop issuing the stablecoin.
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The company said it will stop issuing the asset, but will continue to support repurchase and conversion operations until at least February 2024. The Department has reported the measure has been taken due to insufficient security of the "stablecoin."