Binance Partner Paxos Hit with $48.5 Million Fine by NYDFS Over BUSD Compliance Lapses

New York regulators have imposed a hefty $48.5 million penalty on stablecoin issuer Paxos due to systemic compliance failures in its Binance USD (BUSD) partnership. The settlement includes a $26.5 million fine and requires $22 million in compliance program upgrades. Investigations revealed $1.6 billion in illicit flows through BUSD, highlighting significant gaps in Paxos' anti-money laundering controls. This development underscores the increasing regulatory scrutiny on cryptocurrency partnerships and stablecoin operations, particularly those involving major players like Binance.

Paxos Fined $48.5 Million by NYDFS Over BUSD Compliance Failures

New York regulators have slapped stablecoin issuer Paxos with a $48.5 million penalty for systemic compliance failures surrounding its Binance USD (BUSD) partnership. The settlement includes a $26.5 million fine and mandates $22 million in compliance program upgrades.

Investigators uncovered $1.6 billion in illicit flows through the BUSD stablecoin, exposing glaring deficiencies in Paxos' anti-money laundering controls. The New York Department of Financial Services found inadequate due diligence on Binance, along with broken transaction monitoring and KYC systems.

Paxos ceased BUSD issuance last year following regulatory pressure. The company maintains these were "historical" issues now "fully remediated." This enforcement action underscores growing regulatory scrutiny of stablecoin arrangements between issuers and crypto exchanges.

Bitcoin Defies Market Fears with Resilient Performance

Bitcoin (BTC) has demonstrated remarkable resilience despite renewed liquidity concerns and miner sell-offs on Binance. The cryptocurrency's price held steady at $116,707, buoyed by a 7.4% increase in mining difficulty—a sign of network stability. Bulls are now eyeing a return to the all-time high seen on July 14, as miner capitulation fears subside.

On July 25, miners moved 18,000 BTC (worth over $2 billion) to Binance, coinciding with a $650 million USDC outflow. While this initially sparked concerns, Bitcoin's price action remained subdued compared to past corrections. Analysts note that miner behavior, though not panic-driven, isn't fueling upward momentum either.

The market's liquidity shrinkage hasn't derailed Bitcoin's balanced outlook. Funds leaving exchanges failed to dent its ascent, while rising mining difficulty suggests no widespread miner distress. As one commentator put it, 'The network's fundamentals are speaking louder than short-term volatility.'

Hexydog ($HEXY) Presale Surges 100% Amid Growing Interest in Pet-Centric Blockchain Project

Hexydog's $HEXY token has doubled in value during its presale phase, climbing from $0.0021 to $0.0042 before official exchange listings. The project has raised $550,000 by targeting the $350 billion global pet care market with blockchain-based payment systems and service tools.

Built on Ethereum, Binance Smart Chain, and Solana, the multi-chain approach enables low-cost transactions while avoiding single-network limitations. Analysts project potential post-listing targets between $0.01-$0.03, particularly if the team secures Binance Launchpad inclusion.

The presale's success stems from tangible utility in a high-growth sector rather than speculative promises. Security remains a Core focus, with the development team implementing robust measures to protect the ecosystem.

Analysts Eye BlockchainFX Amid Binance Listing Rumors as Mantle, Spark, and Chainlink Gain Traction

Market analysts are tracking four crypto projects with potential for 10x growth, with BlockchainFX ($BFX) emerging as a standout contender. Rumors of a Binance listing have fueled interest in BFX, which distinguishes itself with a live trading platform, verified utility, and USDT rewards for holders. The project has already raised $4.7 million from over 4,000 buyers during its presale phase.

Mantle (MNT), Spark (SPK), and chainlink (LINK) continue to make headlines, but BlockchainFX's revenue-generating model offers unique presale upside. The platform combines crypto, stocks, forex, and commodities trading, boasting 10,000 daily users and millions in trading volume. Holders can earn 4-7% daily USDT rewards, with APYs reaching up to 90% during the presale.

BlockchainFX's Visa card integration and revenue-sharing model—distributing up to 70% of trading fees to holders daily—further solidify its position as a presale leader. With $500,000 in BFX tokens available, the project is redefining investment opportunities in the crypto space.

Ukraine Legalizes Cryptocurrencies but Bans Payments, Aligns with FATF Standards

Ukraine has taken a decisive step toward cryptocurrency regulation by legalizing digital assets while explicitly prohibiting their use as legal tender. The National Bank of Ukraine (NBU) Governor Andriy Pyshnyy framed the payment ban as a "red line" to safeguard monetary policy tools and financial stability.

The framework will bring Ukraine into compliance with Financial Action Task Force (FATF) standards and EU requirements. Notably, the central bank reserves the right to include cryptocurrencies like Bitcoin in state reserves—a potential long-term bullish signal for institutional adoption.

This measured approach aims to prevent circumvention of currency controls during martial law while acknowledging crypto's growing role in global finance. Market participants will watch how this affects Eastern European trading volumes on exchanges like Binance and WhiteBIT, which serve Ukrainian users.

Binance Partners with BBVA to Enhance Custody of Crypto Assets

Binance has enlisted Spanish banking giant BBVA as an independent custodian for customer funds, marking a strategic shift toward institutional-grade asset protection. The arrangement involves holding collateral in U.S. Treasuries, which Binance will accept as margin for trading—a MOVE designed to mitigate counterparty risk and restore confidence after a turbulent period for the exchange.

BBVA’s role as a regulated financial institution lends credibility to Binance’s custody framework, contrasting with its previous reliance on lesser-known partners. The bank’s reputation for stability aligns with crypto’s push for mainstream adoption, offering users a bridge between traditional finance and digital assets.

This follows similar custody agreements with Sygnum and FlowBank, suggesting Binance is systematically addressing regulatory concerns. By anchoring assets in Treasuries, the exchange ensures liquidity while appealing to risk-averse participants—a calculated step toward maturation in a post-FTX landscape.