Paxos Wins Initial Approval from Abu Dhabi to Issue Stablecoins
- Blockchain payments firm Paxos has secured in-principle approval in Abu Dhabi to issue stablecoins.
- The firm will now be able to offer crypto-brokerage and custody services along with US-backed stablecoins.
- The firm will continue to follow KYC and AML policies similar to those in Singapore and the US.
- The firm recently received a similar approval from the Monetary Authority of Singapore (MAS).
Paxos, a leading payments firm based in the United States, has announced that it has received official in-principle approval from Abu Dhabi regulators for issuing stablecoins in the region. The firm secured similar approval from the Monetary Authority of Singapore (MAS) earlier this month and plans to expand operations outside the US.
In a November 29 press statement, Paxos stated that it secured the “in-principle approvals (IPAs) of the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM) for the necessary Financial Services Permissions to issue US dollars and other currency-backed stablecoins, as well as to offer crypto-brokerage and custody services from two regulated ADGM entities.”
Interestingly, if Paxos continues to operate within the confines of the local law, it will be granted a full license in the near future, which will allow it to expand the footprint of its regulated US-dollar-backed stablecoin offerings.
“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 is unique in the industry for this approach, and we will continue expanding our regulatory licensing to serve global enterprises as a trusted, innovative partner,” said Walter Hessert, Paxos Head of Strategy.
Paxos stated that it is on a mission to expand operations around the globe while collaborating with regulators on digital asset frameworks. The American firm said that it adheres to the strict KYC and AML requirements of Singapore and American regulators. The firm confirmed that its activities in Abu Dhabi will follow similar policies.
The payments firm stated that it “aims to open the financial system to everyone, creating more access and freedom for billions of people around the world,” while adding that it “remains committed to its mission of building a more inclusive and accessible financial future.”
As reported earlier by BitcoinWisdom, Paxos renounced its support for the Binance USD (BUSD) stablecoin following regulatory pressure from the authorities in the US. On the other hand, the world’s largest crypto exchange by market cap, Binance, confirmed that it will end support for BUSD in December. Additionally, the firm has also been working with PayPal on its flagship stablecoin, the PayPal USD (PYUSD).
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
