Paxos poised to expand global stablecoin operations in Abu Dhabi with regulatory green light News ▸ Singapore · UAE ▸ Regulation
Paxos poised to expand global stablecoin operations in Abu Dhabi with regulatory green light
FSRA's provisional nods set Paxos on course to issue stablecoins and expand digital services in Abu Dhabi.
2 min read
Updated: Nov. 29, 2023 at 3:28 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Paxos has obtained in-principle approvals from the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM). These approvals mark a significant step for Paxos in the region, allowing it to issue US dollars and other currency-backed stablecoins and offer crypto-brokerage and custody services from its regulated ADGM entities.
This development is reportedly part of Paxos’s strategy to expand its global footprint in regulated digital assets. Once full approval is granted, Paxos aims to enhance the reach of its regulated USD-backed stablecoins across the UAE, a move seen as pivotal in the context of the global digital economy.
Paxos has consistently displayed a commitment to regulatory compliance by proactively seeking regulatory oversight, ensuring that its operations and issued tokens adhere to established regulatory standards.
In a statement, Walter Hessert, Paxos’ Head of Strategy, emphasized the transformative potential of blockchain technology in the global financial system. He noted that the approvals from the FSRA, alongside their recent IPA from the Monetary Authority of Singapore, “solidify our commitment to pursuing international growth through regulated frameworks.”
Paxos asserts that it maintains rigorous Anti-Money Laundering (AML) and Know Your Customer (KYC) standards, aligning with leading financial markets like the US and Singapore. This alignment is likely critical as Paxos extends its activities in the Abu Dhabi Global Market, reflecting a commitment to maintaining the highest operational standards.
All Paxos stablecoins are fully backed 1:1 by the US Dollar and cash equivalents, and Paxos issues monthly attestations and reserve reports, providing token holders with clarity on their holdings.
This latest move by Paxos is a clear indicator of the growing importance of regulated digital asset services in the global market, reflecting a shift towards more open, secure, and innovative financial systems.
However, proponents of decentralization and public blockchains, such as Bitcoin and Ethereum, may also foresee caution in the regulatory environment following recent statements from key players such as Director of Mas, Ravi Menon. While approval such as Paxos may appear progressive, Menon anticipates a new financial system comprising CBDCs, tokenized bank liabilities, and regulated stablecoins.
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Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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