Stablecoin issuer Paxos has received in-principle approval from the Financial Services Regulatory Authority to issue stablecoins in Abu Dhabi.
Paxos, a cryptocurrency brokerage firm and stablecoin issuer, has obtained two in-principle approvals from the Financial Services Regulatory Authority in Abu Dhabi.
According to a press release dated November 29, 2023, the green light from the regulator allows the company to issue US dollars and other coin-backed stablecoins. The New York-based company can now also offer cryptocurrency brokerage and custody services in the region.
“Our in-principle approvals from the Financial Services Regulatory Authority, coming on the heels of our in-principle approval from the Monetary Authority of Singapore, solidify our commitment to pursuing international growth through regulated frameworks.”
Paxos Chief Strategy Officer Walter Hessert
The expansion in Abi Dhabi comes just weeks after Paxos received in-principle approval to issue US dollar-pegged stablecoins in Singapore. The Monetary Authority of Singapore recognized that the stablecoin complied with the regulator’s proposed regulatory framework even before its main provisions came into effect.
In early 2023, reports emerged that the New York Department of Financial Services began investigating Paxos. Following the rumors, the company issued a statement saying it had not been asked to withdraw its application for national trust bank status with the Office of the Comptroller of the Currency (OCC) in New York.
A few days later, Paxos stopped minting the Binance USD stablecoin following a notice from Wells of the US Securities and Exchange Commission.
