Paxos Gains Approval to Issue Stablecoins in Abu Dhabi

By: Eliza Bennet

The leading crypto firm, Paxos, has received in-principle approval from the Financial Services Regulatory Authority (FSRA) in Abu Dhabi Global Market (ADGM) to issue currency-backed stablecoins and offer various digital asset services. Given its commitment to regulatory compliance, Paxos has been proactive in obtaining regulatory oversight, aligning with major financial markets like the US and Singapore.

Paxos is a trusted name in the industry, known for maintaining rigorous Anti-Money Laundering (AML) and Know Your Customer (KYC) standards. The company's stability, safety, and reliability extends to its stablecoin reserves, all of which are fully-backed 1:1 by the US Dollar and cash equivalents. Paxos offers monthly attestations and reserve reports to provide clarity and transparency for token holders.

Given its latest approval by the FSRA, coupled with a recent IPA from the Monetary Authority of Singapore, Paxos is poised to expand its services in the UAE as it aims to enhance the reach of its regulated USD-backed stablecoins across the region. This is seen as a significant step in the context of the global digital economy and is reflective of a shift towards open, secure, and innovative financial structures.

While recognizing the transformative potential of blockchain technology in the global financial system, critics caution against the regulatory environment, particularly proponents of decentralization and public blockchains, such as Bitcoin and Ethereum.