The Financial Services Regulatory Authority has given its in-principle clearance for stablecoin issuer Paxos to launch stablecoins in Abu Dhabi.
The Financial Services Regulatory Authority in Abu Dhabi has granted two in-principle permissions to Paxos, a stablecoin issuer and cryptocurrency brokerage.
According to a press statement on November 29, 2023, the regulator’s approval permits the company to create stablecoins backed by the U.S. dollar and foreign currencies.
With its headquarters in New York, the corporation can now provide custody and crypto-brokerage services in the area. Walter Hessert, Head of Strategy at Paxos, said:
“Our in-principle approvals from the Financial Services Regulatory Authority, on the heels of our in-principle approval from the Monetary Authority of Singapore, solidify our commitment to pursuing international growth through regulated frameworks.”
Only a few weeks have passed since Paxos obtained preliminary approval to launch stablecoins backed by the U.S. dollar in Singapore. Now, the company is expanding to Abu Dhabi.
Even before its primary rules went into effect, the Monetary Authority of Singapore declared that the stablecoin complied with the regulatory framework suggested by the regulator.
Rumors circulated in early 2023 that the New York Department of Financial Services had begun looking into Paxos. In response to the rumors, the company released a statement stating that the Office of the Comptroller of the Currency (OCC) in New York had yet to request that it drop its application for a national trust bank charter.
A few days later, in response to a Wells notice from the U.S. Securities and Exchange Commission, Paxos stopped minting the Binance USD stablecoin.