Crypto agency Paxos has secured in-principle approval from Abu Dhabi’s regulator on two fronts: to issue stablecoins and conduct digital asset companies.
In a Nov. 29 announcement, Paxos said the Financial Services Regulatory Authority in the Abu Dhabi Global Market had granted in-principle approval for the corporate to issue United States dollar-backed stablecoins in addition to “offer crypto-brokerage and custody services” in the emirate. The approval followed a similar move by regulators in Singapore, the place Paxos mentioned its native entity would launch a U.S. dollar-backed stablecoin.
“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,” mentioned Paxos head of technique Walter Hessert. “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.”
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According to Paxos, it should proceed to broaden the usage of its stablecoins upon full approval. The agency reiterated transparency relating to its stablecoin reserves as “stable, safe, and reliable.” PayPal launched its PYUSD stablecoin issued by Paxos in August.
On Nov. 1, the Abu Dhabi Global Market introduced comprehensive regulations associated to distributed ledger expertise. The area started getting ready rules on cryptocurrency in 2018.
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