Controversy over Binance listing PAX: can governments freeze and burn your coins?

21 Sep, 2018
by Jelmer van der Dussen
News
Controversy over Binance listing PAX: can governments freeze and burn your coins?

Binance on Friday announced the listing of stablecoin PAX, only days after controversy arose around the 'regulated' cryptocurrency with a stable value of $1. 

Binance CEO Changpeng Zhao praised PAX for the fact it is a compliant and regulated stablecoin, but that has a downside too. According to researcher John Backus the PAX stablecoin gives 'admin write access' to law enforcement, meaning that 'the government can freeze and burn anyone's coins'.

Following the statement announcing the listing of PAX, Binance CEO CZ said that 'regulated stablecoins serve as a middle ground where regulators maintain control, but the token also offers far more freedom than traditional fiat for users.' He then said he hopes 'more will copy/follow/improve, and for other fiat currencies too.'

Backus speaks out his concerns about the control governments have on a regulated stablecoin as PAX, that is issued by the Paxos Trust Company.

PAX will be the third stablecoin listed on Binance. It is not yet available for trading as Binance has first opened deposits to create liquidity in the PAX/BTC and PAX/BNB markets. According to a statement of Binance, Paxos 'has engaged a top-ranking auditing firm to release monthly balance attestations of the corresponding PAX and USD balances held/issued'.

Read more: Binance lists third stablecoin with two pairs, CZ praises 'regulated stablecoins'

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Read more about:Binance

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