Stablecoin Issuer Paxos Receives Approval to Operate in Abu Dhabi
Stablecoin issuer Paxos has received in-principle approvals from the Financial Services Regulatory Authority to issue stablecoins in Abu Dhabi. This latest development allows Paxos, a cryptocurrency brokerage firm, to issue U.S. dollar and other currency-backed stablecoins. Additionally, the company can now provide crypto-brokerage and custody services in the region.
Expansion into Abu Dhabi
This approval comes shortly after Paxos received similar in-principle approval to issue stablecoins pegged to the U.S. dollar in Singapore. The Monetary Authority of Singapore recognized Paxos’ stablecoin as compliant with regulatory frameworks even before they were officially implemented.
Investigation Rumors
In early 2023, there were reports of an investigation by the New York Department of Financial Services into Paxos. However, the company clarified that it had not been asked to withdraw its application for a national trust bank charter from the Office of the Comptroller of the Currency.
Paxos also faced a temporary halt in minting the Binance USD stablecoin following a Wells notice from the U.S. Securities and Exchange Commission.
Hot Take: Paxos Expands International Presence with Regulatory Approvals
Paxos continues its international expansion with in-principle approvals from regulatory authorities in both Abu Dhabi and Singapore. These approvals enable Paxos to issue stablecoins backed by various currencies and provide crypto-brokerage and custody services in these regions. With these regulatory greenlights, Paxos solidifies its commitment to pursuing global growth within regulated frameworks.
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