Paxos gets the greenlight to issue stablecoins in Abu Dhabi

Stablecoin issuer Paxos has received in-principle approvals from the Financial Services Regulatory Authority to issue stablecoins in Abu Dhabi.

Paxos, a cryptocurrency brokerage firm and stablecoin issuer, has secured two in-principle approvals of the Financial Services Regulatory Authority in Abu Dhabi.

According to a press release on Nov. 29, 2023, the greenlight from the regulator allows the firm to issue U.S. dollar and other currency-backed stablecoins. The New York-headquartered company can now also offer crypto-brokerage and custody services in the region.

“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.”

Paxos Head of Strategy, Walter Hessert

The expansion in Abi Dhabi comes just a few weeks after Paxos received in-principle approval to issue stablecoins pegged to the U.S. dollar in Singapore. The Monetary Authority of Singapore recognized the stablecoin as compliant with the regulatory framework proposed by the regulator even before its main provisions came into force.

In early 2023 reports surfaced that the New York Department of Financial Services started investigating Paxos. Following the rumors, the firm issued a statement, saying it had not been asked to withdraw its application for a national trust bank charter from the New York’s Office of the Comptroller of the Currency (OCC).

A few days later, Paxos halted minting the Binance USD stablecoin following a Wells notice from the U.S. Securities and Exchange Commission.