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HomeNewsStablecoin Milestone: Paxos Receives In-Principle Approval in Abu Dhabi

Stablecoin Milestone: Paxos Receives In-Principle Approval in Abu Dhabi

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  • Paxos has received in-principle approval from Abu Dhabi’s Financial Services Regulatory Authority to issue U.S. dollar-backed stablecoins and provide crypto brokerage and custody services.
  • This approval builds on Paxos’ regulatory achievements, following a similar approval in Singapore, demonstrating the company’s commitment to regulated international expansion.

Paxos’ Regulatory Triumph in Abu Dhabi

Cryptocurrency firm Paxos has made a significant breakthrough in the Middle East, obtaining in-principle approval from the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM) for two major ventures: issuing U.S. dollar-backed stablecoins and conducting a range of digital asset services.

Expanding Stablecoin and Crypto Services

This recent announcement, made on November 29, follows a successful regulatory approval in Singapore, where Paxos plans to launch a U.S. dollar-backed stablecoin. The approval from Abu Dhabi’s FSRA allows Paxos to not only issue stablecoins but also offer crypto-brokerage and custody services in the emirate.

Walter Hessert, Paxos’ head of strategy, emphasized the company’s approach to international growth through regulated frameworks. He stated, “Our IPAs from the FSRA, on the heels of our IPA from the Monetary Authority of Singapore, solidify our commitment to pursuing international growth through regulated frameworks.” Paxos stands out in the industry for its regulatory-focused expansion strategy, aiming to serve global enterprises as a trusted and innovative partner.

A Vision for Stablecoin Transparency and Reliability

Paxos highlighted its commitment to transparency and reliability regarding its stablecoin reserves. In August, PayPal launched its PYUSD stablecoin, issued by Paxos, further validating the firm’s credibility in the stablecoin space.

Regulatory Landscape in Abu Dhabi

The approval from Abu Dhabi’s FSRA is part of a broader regulatory environment that is increasingly embracing distributed ledger technology. On November 1, the Abu Dhabi Global Market introduced comprehensive regulations relating to this technology. The region has been actively preparing cryptocurrency regulations since 2018, signaling its commitment to becoming a key player in the global digital asset market.

Conclusion

Paxos’ recent regulatory successes in Abu Dhabi and Singapore mark a significant milestone in its global expansion. By obtaining in-principle approvals in key financial hubs, Paxos reinforces its position as a leader in the regulated cryptocurrency and stablecoin market. This strategic move highlights the growing importance of regulatory compliance in the rapidly evolving world of digital assets and blockchain technology.

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AnnJoy Makena
AnnJoy Makenahttps://www.ethnews.com
Annjoy Makena is an accomplished and passionate writer who specializes in the fascinating world of cryptocurrencies. With a profound understanding of blockchain technology and its implications, she is dedicated to demystifying complex concepts and delivering valuable insights to her readers. Business Email: info@ethnews.com Phone: +49 160 92211628
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