Pax Dollar

BUSD

PayPal USD

<p>Paxos, a New York-based blockchain and tokenization infrastructure platform, has achieved in-principle licensing approvals from the Abu Dhabi Global Market’s (ADGM) Financial Services Regulatory Authority (FSRA).</p><h2 id="header-0">Enabling stablecoin issuance</h2><p>In a <a href="https://www.prnewswire.com/news-releases/paxos-receives-in-principle-approvals-from-the-financial-services-regulatory-authority-to-issue-stablecoins-and-conduct-digital-asset-services-from-the-abu-dhabi-global-market-302000692.html" rel="noopener noreferrer nofollow">press release</a> published on Wednesday, Paxos outlined that these approvals mark a significant step for the company, enabling it to issue USD and other currency-backed stablecoins while also providing crypto-brokerage and custody services through two regulated ADGM entities.</p><p>This licensing acquisition comes hot on the heels of a similar outcome in Singapore. Earlier this month, Paxos subsidiary Paxos Digital Singapore Pte. Ltd., <a href="https://medium.com/&#64;coinness.gl/paxos-gets-green-light-from-singapore-regulator-for-usd-stablecoin-216ab1cef258" rel="noopener noreferrer nofollow">received</a> in-principle approval from the Monetary Authority of Singapore (MAS). That approval enables it to offer digital payment token services and issue USD-backed stablecoins within the Southeast Asian city-state.</p><p>The company, while making efforts to focus on transparency and accountability, aims to extend the global reach of its regulated USD-backed stablecoins upon receiving full approval in Abu Dhabi. Walter Hessert, Paxos’ Head of Strategy, emphasized the importance of regulatory compliance and engagement with authorities to shape digital asset rules, maintaining Anti-Money Laundering (AML) and Know Your Customer (KYC) standards.</p><p>Hessert stated:</p><p>”Our IPAs [in-principle approvals] from the FSRA [Financial Services Regulatory Authority], on the heels of our IPA from the Monetary Authority of Singapore, solidify our commitment to pursuing international growth through regulated frameworks. Paxos is unique in the industry for this approach and we will continue expanding our regulatory licensing to serve global enterprises as a trusted, innovative partner.”</p><h2 id="header-1">U.S. regulatory difficulties</h2><p>In addition to Singapore and now Abu Dhabi, Paxos already holds approvals from the New York State Department of Financial Services (NYDFS), the local state regulator in New York in the United States. The company’s experience in its home market has been problematic more recently, however.</p><p>In February, the Securities and Exchange Commission (SEC) <a href="https://www.wsj.com/amp/articles/crypto-firm-paxos-faces-sec-lawsuit-over-binance-usd-token-8031e7a7" rel="noopener noreferrer nofollow">issued</a> Paxos with a Wells Notice, a letter that informs the receiver that infractions have been uncovered following investigation. The New York regulator, the NYDFS, also took action against Paxos, claiming that the company didn’t administer BUSD in a safe and sound manner.</p><p>These actions led to Paxos ceasing to mint any further BUSD stablecoin, and existing BUSD tokens will remain redeemable until at least February next year.</p><h2 id="header-2">Focus on Asia and Middle East</h2><p>It’s likely that these regulatory difficulties have led to the company concentrating its effort in 2023 on expanding in overseas markets. Licensing accomplishments in Singapore and Abu Dhabi speak to that.</p><p>Paxos expressed contentment with MAS as its regulator in Singapore, anticipating that the oversight will accelerate global consumer adoption of digital assets. As the first blockchain service provider to obtain licenses in both New York and Singapore, the company is strengthening its regulatory portfolio globally.</p><p>This is further evidenced by a recent collaboration the company had formed in the Philippines earlier this month. Paxos has forged an <a href="https://medium.com/&#64;coinness.gl/coins-ph-partners-with-paxos-to-further-pyusd-adoption-cad467046c9e" rel="noopener noreferrer nofollow">alliance</a> with Coins.ph, a leading cryptocurrency exchange in the Southeast Asian country. The goal of the collaboration is to propel the adoption in the Philippines of PayPal USD (PYUSD), a U.S. dollar stablecoin issued by Paxos.</p>

Paxos scores licensing approval in Abu Dhabi

Table of Contents

CoinNess Global

Other articles published on Dec 1, 2023

The Dawn of a New Era: America’s AI-Enabled B-21 Raider

The Remarkable Ascent of Solana in 2023: A Crypto Ecosystem on the Rise

KuCoin Ventures Invests in TON Foundation: A Strategic Move for Ecosystem Growth

Ethereum’s Top 10 Whales Now Control 41 Million ETH, A New ATH

How Close Is MATIC to Repeating Its Historical Price Surge Over 19,000%?

Ripple vs. SEC: Stuart Alderoty signals supreme court win for Ripple against SEC

Join our free newsletter for daily crypto updates!