Yes, on a centralized entity you're required to trust ("we're totally backed by cash and bonds, for realsies"), as opposed to owning and holding your crypto outright.
From their web page:
> Transparent
> A top auditing firm will attest to the matching supply of BUSD tokens and underlying U.S. dollars on a monthly basis.
Note the future tense, as in, "sometime indefinitely away in the future".
Their attestations (as opposed to audits) just say that at a certain instant in time they had the required amount in a bank account. That means Paxos could have borrowed it for a short while. Quote [1]: "Any activity prior to or after the Report Dates and Times at 5:00 pm ET was not considered when testing the assertions described above."
This is the same trick pointed out by Coffeezilla about a year ago, about Tether. [2]
Binance is regulated where exactly? Can you please point me to the jurisdiction where it's offices are located, so I can instruct my lawyers to send them some papers? Just asking in case something happens in the future.
BUSD is not a Binance product, it is a Paxos product [0] regulated by the New York State Department of Financial Services. Binance merely pays to have their name on it.
[1] Here is the specific NYDFS guidance on Paxos' issuance of stablecoins. [2] And here is a link to their NYDFS appointed third-party auditory accounting firm.
Complaints against Paxos can be filed with the New York State Department of Financial Services at:
So in an eventual future where BINANCE stops allowing people to withdraw their BUSD, I can go to Paxos door and complain about it? Will my clown USD be returned to me?
