Paxos receives in-principle approval to situation stablecoins in Abu Dhabi

Crypto agency Paxos has secured in-principle approval from Abu Dhabi’s regulator on two fronts: to situation stablecoins and conduct digital asset providers.

In a Nov. 29 announcement, Paxos said the Monetary Companies Regulatory Authority within the Abu Dhabi International Market had granted in-principle approval for the corporate to situation U.S. dollar-backed stablecoins, in addition to “provide crypto-brokerage and custody providers” within the Emirate. The approval followed a similar move by regulators in Singapore, the place Paxos mentioned its native entity would launch a U.S. dollar-backed stablecoin.

“Our IPAs from the FSRA, on the heels of our IPA from the Financial Authority of Singapore, solidify our dedication to pursuing worldwide progress by means of regulated frameworks,” mentioned Paxos head of technique Walter Hessert. “Paxos is exclusive within the business for this method and we are going to proceed increasing our regulatory licensing to serve world enterprises as a trusted, modern companion.”

Associated: Iota launches $100M Abu Dhabi foundation for Middle East expansion

In line with Paxos, it’ll proceed to increase using its stablecoins upon full approval. The agency reiterated transparency relating to its stablecoin reserves as “steady, secure, and dependable.” PayPal launched its PYUSD stablecoin issued by Paxos in August.

On Nov. 1, the Abu Dhabi International Market introduced comprehensive regulations associated to distributed ledger know-how. The area started getting ready rules on cryptocurrency beginning in 2018.

Journal: Unstablecoins: Depegging, bank runs and other risks loom