Paxos, a provider of blockchain and tokenization infrastructure, has recently received preliminary approvals from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi. The company stated that these endorsements are crucial steps for Paxos, enabling it to issue stablecoins pegged to the U.S. dollar and introduce crypto brokerage and custodial services in the Abu Dhabi Global Market (ADGM).
Paxos Expands into Middle East: Receives Key Approvals for Crypto Operations in ADGM
These preliminary approvals mark Paxos’s significant venture into the rapidly evolving digital asset sector in the Middle East, the company explained on Wednesday. Paxos is set to operate under two regulated frameworks within the ADGM, pending final confirmation. In addition, Paxos has expressed its dedication to ensuring its custody and digital asset infrastructure services are fully compliant with FSRA’s stringent regulations.
“Today’s announcement marks yet another milestone in Paxos’ ability to provide billions of users with safe and trusted digital asset services,” Walter Hessert Paxos’s head of strategy detailed on Wednesday in the press announcement sent to Bitcoin.com News.
Hessert added:
Our IPAs from the FSRA, on the heels of our IPA from the Monetary Authority of Singapore, solidify our commitment to pursuing international growth through regulated frameworks.
A significant number of companies have recently been extending their operations into the United Arab Emirates (UAE), Dubai, and the Abu Dhabi Global Market (ADGM). In mid-September, the FSRA, ADGM’s financial watchdog, introduced six guiding principles to shape its strategy for regulating and supervising virtual assets.
Subsequent to these regulatory developments, Pyypl, a fintech company based in Abu Dhabi, secured $20 million in Series B funding, while the bitcoin mining company Phoenix Group announced its oversubscribed initial public offering (IPO). Paxos has stated that it now adheres to the regulatory standards of New York, Singapore, and ADGM.
“Blockchain technology is revolutionizing the global financial system to be more open, secure, and innovative,” Hessert concluded.
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