Paxos receives proof of principle to issue a stable coin in Abu Dhabi
Crypto firm Paxos has received approval in principle from the Abu Dhabi regulator on two fronts to issue a stablecoin and run digital asset services.
In a Nov. 29 announcement, Paxos said the Financial Services Regulatory Authority of the Abu Dhabi Global Market had granted the company in-principle approval to issue US dollar-backed stablecoins and to provide “crypto-brokerage and escrow services.” Emirates. The approval follows a similar move by regulators in Singapore, where Paxos said the local body would launch a stablecoin backed by the US dollar.
“Our IPAs from the FSRA, on the heels of an IPA from the Monetary Authority of Singapore, reinforce our commitment to sustaining global growth within a regulatory framework,” said Walter Hessert, head of strategy at Paxos. “Paxos is unique in the industry for this approach and we will continue to expand our regulatory mandate to serve global enterprises as a trusted and innovative partner.”
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According to Paxos, the stablecoin will continue to expand its use when it is fully approved. He reiterated transparency regarding the company's stablecoin reserves as “stable, reliable and secure.” PayPal launched the PYUSD stablecoin issued by Paxos in August.
On November 1, the Abu Dhabi International Market introduced general regulations related to distributed ledger technology. The region began developing regulations on cryptocurrency in 2018.
Journal: Unstable Coins: Debasement, Bankruptcy and Other Risks Ahead.
