Paxos, a widely used blockchain and tokenization platform, has made a breakthrough on the Abu Dhabi Global Market (ADGM). The company announced in a press release that it has received conditional approval from the Financial Services Regulatory Authority (FSRA) to issue stablecoins pegged to the US dollar and other currencies. Moreover, the company has also received conditional approvals to offer crypto brokerage and custody services.
The regulatory compliance process in the United Arab Emirates (UAE) is complex and requires in-depth knowledge of local and international financial law. Paxos’ success in obtaining these approvals demonstrates that the company has been able to comply with ADGM’s strict and comprehensive rules and regulations.
Paxos commitment to transparency and regulation
In recent years, the call for transparency and regulation in the crypto sector has become increasingly louder. This demand has been amplified by several events, such as the 2022 Earth fiasco, where the lack of regulation led to massive losses of money and trust. The long-running lawsuits between the U.S. Securities and Exchange Commission and Ripple also underscore the importance of transparency and regulation.
Paxos appears to meet FSRA requirements. The company has strict anti-money laundering (AML) and customer due diligence (KYC) standards, similar to those in the US and Singapore.
These approvals will help Paxos become one of the most regulated blockchain platforms in the world. The country’s efforts in the UAE are a clear sign of its commitment to a more secure and transparent digital financial landscape. Moreover, Paxos sets a new standard.
Vision on the future of financial services
Walter Hessert, Head of Strategy at Paxos, highlights the revolutionary impact of blockchain technology on the global financial system. Paxos aims to make financial services more accessible and inclusive, building on its mission to create a more reliable and innovative financial ecosystem. With its stablecoins backed 1:1 by the US dollar and other fiat currencies, Paxos demonstrates its commitment to stability and reliability in the crypto space.
With the approvals, Paxos can now offer a significantly increased range of services in the UAE. This includes the issuance of stablecoins pegged to the US dollar and other currencies. The issuance of stablecoins is strictly regulated in the UAE, as in many other countries. The same applies to offering and storing cryptocurrencies.
Source: BtcDirect
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
