Paxos Standard giving trouble to users trying to redeem stablecoins for dollars

With stablecoins becoming a ubiquitous part of the crypto landscape, many traders wonder about which one is the safest or most efficient for their purposes. The latest reports concerning Paxos Standard are not very welcoming towards those who are doing their own research about the stablecoin.

According to a report published today by ccn.com, Paxos Standard has been over questioning users who try to redeem their PAX for dollars. Crypto Twitter is already reacting on the news:


Paxos, a NYSDFS regulated company, promises a stable, supported, no fees and fast (operating outside of banking hours, they claim) one-to-one redemption of PAX for USD.

However, the report assures that a group of 5 traders who trade several million dollars a week, saw their funds withheld for a week or more, with one of them not having been able to fulfill the redemption at publishing time.

The common issue shared by the group of traders was an excess of questions coming from the Paxos Standard team, which seemed to be weary of the origin of the funds, the use of several Binance addresses or the identity of the possible counter parties of the traders.

Further questions from Paxos Standard team include enquiries about the user´s trading strategy, their name, location, position and salary, or anticipated monthly activity for purchases and redemptions, among many other sensitive details.

The company replied to these allegations without giving specific information about the cases mentioned in the report, but stating the following:

Yes, we have closed a few accounts, only for very good reasons. It’s all for the sake of AML/KYC compliance. While we don’t comment on the status of individual account activity, we can tell you about the patterns we’ve seen lately.


Source
Author: ALBERTO ARNALDO
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A Top-20 Crypto Exchange Is Replacing Tether With a Rival Stablecoin

A top-20 exchange is phasing out an embattled cryptocurrency.

Digifinex has decided to replace tether (USDT), perhaps the best-known “stablecoin” designed to maintain a steady exchange rate with the U.S. dollar, with a rival, TrustToken’s TrueUSD. Based in Singapore, Digifinex handled $131 million in trading volume over the past 24 hours, according to CoinMarketCap, making it the 16th-largest exchange by that measure.

Kiana Shek, Digifinex’s co-founder, told CoinDesk she’d been “looking for ways to get rid of USDT” for months, adding, “I simply don’t believe in tether but I had no choice” but to list it.

Speaking of the decision to adopt TrueUSD, Shek said, “through my research, due diligence, and my communications with the TrustToken team, I have come to appreciate their commitment to industry-leading best practices.”

She mentioned the team’s compliance with the U.S. Financial Crime Enforcement Network’s (FinCEN) regulations and independent verification by an outside auditing firm.
Tether, the company behind USDT, did not give a comment by press time. The firm has been the subject of much negative attention for over a year now, as it has struggled to convince observers that it holds enough dollar reserves to fully back all the USDT in circulation.

Despite allegations that the Tether’s owners and management – which overlaps with that of the cryptocurrency exchange Bitfinex – are printing money, though, USDT’s value remains pegged to $1.00, and many exchanges list multiple trading pairs in USDT terms.
These listings appeal to traders because USDT can be more easily shifted between exchanges than fiat currency. And at the time of writing, tether is the eighth-most valuable cryptocurrency by market capitalization.

It is notable, therefore, that a large exchange has decided to move away from offering tether trading pairs and adopt a rival stablecoin instead. Given the high number of stablecoins that have recently launched or are set to launch soon, the competition Tether faces is likely to increase.

“The risk from tether and the need for a new USD stablecoin is so great,” TrustToken co-founder and COO Stephen Kade told CoinDesk, “that exchanges have started trying to create their own.” An example of this trend is the Gemini exchange’s recent announcement of a dollar-pegged cryptocurrency.

Kade argued that TrueUSD had an advantage over these rivals, however: “TrueUSD is live and exchange-agnostic,” he said.

TrustToken launched TrueUSD in March, the company’s head of marketing and communications Tony Pham told CoinDesk, and plans to launch products linked to the yen, euro and other fiat currencies in the future. And if the goal of wide adoption by exchanges sounds ambitious, TrustToken’s broader push – to tokenize practically any form of asset – is even more so.

TrueUSD trading will become available on Monday at 15:00, Singapore time. Initially, Digifinex will offer TrueUSD trading pairs with bitcoin, ethereum and tether.
Both tether and TrueUSD trading will remain available for a while, said Pham, before tether is dropped from the exchange.


Source
Author: David Floyd
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Blockchain Startup Havven to Launch Stablecoin on EOS This Year

A blockchain startup that sets out to offer cross-blockchain payments has announced it is planning to bring its existing stablecoin – a cryptocurrency tied to a stable asset – to the EOS network.

LIONBIT

Called Havven, the Australia-based project said in a release on Wednesday that it is expecting to issue its nUSD stablecoin on EOS by the end of this year. The U.S. dollar-pegged token first launched on the ethereum network in June.

The goal, the startup said, is not to switch the token’s fundamental network from ethereum to EOS, but to issue nUSD on both networks separately – a mission it claims will “offer cross-blockchain stablecoins.”

“At this stage, cryptocurrency is still in its infancy, so it’s not clear which blockchains will manage to scale,” Havven’s founder Kain Warwick said in the announcement, adding:

“For this reason, it’s important that projects providing blockchain infrastructure plan to provide cross-chain compatibility, so their success isn’t bound to the success of whatever chain they’ve chosen.”

A stablecoin is typically designed to adjust its supply as the market shifts in order to maintain a price pegged to an asset such as a fiat currency, providing a lack of volatility makes it easier for businesses or users to adopt.

TIP

For instance, stablecoin startup MakerDAO is currently working with supply chain management firm Tradeshift to use its ethereum-based DAI token to help speed up payments for small businesses.

Havven’s effort comes after EOS officially announced its long-awaited network launch in June. Block.One, the entity behind the EOS blockchain has also revealed a $1 billion investment fund to facilitate the growth of its ecosystem.


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Source
Author: Wolfie Zhao
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