Paxos Gains Provisional Approval to Issue Stablecoins and Provide Crypto Services in Abu Dhabi
Summary:
Crypto firm Paxos has received provisional approval from Abu Dhabi's Financial Services Regulatory Authority to issue US dollar-backed stablecoins and provide crypto-brokerage and custodial services. This follows a similar approval from regulators in Singapore. Paxos intends to expand the use of its stablecoins and continue its commitment to transparency and reliability. In related news, the Abu Dhabi Global Market recently introduced extensive blockchain regulations.
Paxos, a prominent player in the crypto industry, has recently attained provisional approval from the Financial Services Regulatory Authority (FSRA) at Abu Dhabi Global Market. This permission paves the path for two major initiatives of Paxos: the issuance of US dollar-backed stablecoins, as well as providing cryptocurrency brokerage and caretaking service in the Emirate. Paxos’s announcement on November 29 trails a similar regulatory green light given by Singaporean authorities for a local Paxos entity to release a U.S. dollar-pegged stablecoin.
The head of Paxos strategy, Walter Hessert, articulates that these initial in-principle approvals from FSRA, closely following the one from Singapore's Monetary Authority, prove the firm’s dedication to chasing growth internationally, within fully regulated frameworks. He adds that Paxos holds a unique place in the crypto industry due to its focus on expanding their regulatory licenses, which will help them to serve global organizations as an innovation-driven, reliable partner.
Paxos has also revealed its intention to extend the use of its stablecoins once they receive full approval. The firm has reiterated its commitment to transparent dealings with its stablecoin deposits and ensuring stability, security, and reliability. The PYUSD stablecoin issued by Paxos was launched by PayPal in August.
On the regulatory front, the Abu Dhabi Global Market has introduced extensive regulations related to blockchain technology on November 1. The region started drafting cryptocurrency-specific regulations as early as 2018. The recent regulatory activities are in line with the growing risks associated with crypto-assets.
Published At
11/29/2023 6:00:00 PM
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