LONDON, Feb 13 Reuters New York39;s chief financial regulator has ordered Paxos, the company behind the stablecoin of major crypto exchange Binance, to stop issuing the token, Paxos and the regulator said in separate statements on Monday.

The Binance USD BUSD stablecoin, one of the world39;s biggest, is issued and redeemed by New Yorkbased Paxos Trust Company, both of which are regulated by the New York Department of Financial Services NYDFS.

The token, which is designed to keep a steady value and is widely used by crypto traders at Binance, is backed by reserves of ordinary cash and U.S. Treasuries, based on Paxos39; website.

The NYDFS said in a statement that it ordered Paxos to stop minting BUSD as a result of several unresolved issues related to Paxos oversight of its relationship with Binance through Paxosissued BUSD. The regulator39;s statement did not give any details of what those issues were.

Binance CEO Changpeng Zhao wrote in a series of tweets earlier on Monday that the regulator39;s decision meant that BUSD market cap will only decrease over time, adding that Paxos assured Binance the funds were fully covered by Paxos39; bank reserves.

BUSD is wholly owned and managed by Paxos, Zhao said.

Binance USD is the seventhlargest cryptocurrency, with more than 16 billion in circulation, according to market tracker CoinGecko. Zhao said Binance would continue to support BUSD for the foreseeable future and that he saw users migrating to other stablecoins over…