The New York Department of Financial Services (NYDFS) announced the deal on August 7.

As part of the agreement, Paxos will pay a $26.5 million fine and spend another $22 million to improve its internal compliance systems.

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The regulator found that Paxos failed to properly review its relationship with Binance and allowed around $1.6 billion to move through its Binance USD (BUSD) stablecoin in suspicious transactions.

NYDFS Superintendent Adrienne A. Harris stated:

Regulated entities must maintain appropriate risk management frameworks that correspond to their business risks, which include relationships with business partners and third-party vendors.

In February 2023, NYDFS ordered Paxos to stop issuing BUSD. The US Securities and Exchange Commission (SEC) also sent a Wells Notice to Paxos.

The letter claimed that the company had broken securities laws by offering an unregistered asset through its partnership with Binance. However, the SEC dropped the notice in 2024 and did not follow through with charges.

Still, NYDFS claimed that Paxos failed to meet know your customer (KYC) requirements, which are meant to ensure that businesses understand who they are dealing with.

Recently, the SEC reached a settlement with Huynh Tran Quang Duy, the founder of MyConstant. What does the agreement include? Read the full story.

The updated regulations bring higher taxes for those who sell or mine crypto, while buyers will no longer have to pay value-added tax (VAT).

The Ministry of Finance announced two new rules, No. 50/2025 and No. 53/2025, on July 28. These changes are part of the government’s effort to improve how crypto transactions are taxed.

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One major change is the increase in income tax on sales made through local crypto platforms. The rate has gone up from 0.1% to 0.21%. For trades made on overseas exchanges, the tax rises from 0.2% to 1%.

The VAT on mining services has been raised from 1.1% to 2.2%. Additionally, a 0.1% special income tax that applied to mining will be removed starting in 2026. After that, miners will need to follow the general rules for either personal or corporate income tax.

According to Regulation 50/2025, miners who are registered as taxable businesses are treated like retail traders. Those who do not meet the required standards could face penalties under the country’s tax laws.

At the same time, the government is removing VAT from some types of crypto transactions. Transfers of digital assets that are treated similarly to securities will no longer be taxed under VAT rules.

According to a report by CNBC Indonesia, Finance Minister Sri Mulyani Indrawati stated that these updates are meant to provide clearer rules and keep up with changes in the crypto market.

Meanwhile, the Hong Kong Monetary Authority (HKMA) recently finalized new rules for stablecoin issuers. What do these rules cover? Read the full story.

The New York Department of Financial Services (NYDFS) said the fine came after an investigation into how the company handled rules around anti-money laundering (AML) and cryptocurrency transactions.

According to Bloomberg, which reviewed the regulator’s consent order, NYDFS found several issues with how Cash App was run. The report said Block failed to properly check the background of its users and did not take enough steps to review risky Bitcoin
BTC


$81,994.38

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Block said it worked with NYDFS to resolve concerns linked to how Cash App used to handle compliance. However, the company did not admit it broke any rules.

Bloomberg noted that the two sides had been working on a settlement since 2024, based on documents filed with the US Securities and Exchange Commission (SEC).

The company, created by Jack Dorsey in 2009, continues to perform well despite the regulatory issues. At the end of 2024, Block reported a 4.5% increase in revenue compared to the previous year, which reached $6.03 billion.

Block’s payment systems processed $61.95 billion in the same period, a 10% increase in total volume. This growth shows the company’s services remain in high demand.

Meanwhile, CLS Global, a company that provides liquidity in crypto markets, was recently fined over $428,000 and banned from operating in US crypto markets. Why? Read the full story.