Abu Dhabi Global Market's Financial Services Regulatory Authority (FSRA) announced revisions to its anti-money laundering and sanctions rules and guidelines, clarifying requirements previously included in the anti-money laundering rules, particularly making some minor drafting amendments to the wire transfer provisions to more clearly state that the Financial Action Task Force's (FATF) travel rule applies to virtual assets.

Abu Dhabi is becoming a popular destination for cryptocurrency companies seeking enthusiastic investors and more friendly regulatory agencies, while major markets such as the United States are currently lacking in both.

BV Investment Management, a subsidiary of Binance, has recently withdrawn its license application to the Abu Dhabi financial regulatory agency. Last year, the company applied for a license to allow it to manage a collective investment fund. (Reuters)

Paxos has received preliminary approval from Abu Dhabi's regulator to issue stablecoins and provide digital asset services. The Financial Services Regulatory Authority in the Abu Dhabi Global Market granted Paxos in-principle approval to issue U.S. dollar-backed stablecoins and offer crypto-brokerage and custody services in the Emirate. This follows a similar approval from regulators in Singapore, where Paxos plans to launch a U.S. dollar-backed stablecoin. Paxos plans to expand the use of its stablecoins upon full approval and emphasizes transparency regarding its stablecoin reserves.

On November 29th, according to The Block, Paxos has obtained two principle approvals from the Abu Dhabi Global Market Financial Services Regulatory Authority to issue stablecoins and provide cryptocurrency brokerage and custody services.<br>A Paxos spokesperson stated that the company is expected to receive full approval in the first half of next year, which will enable Paxos to issue new stablecoins backed by the US dollar and other currencies from Abu Dhabi.<br>

Abu Dhabi, the second-most populous emirate in the UAE, has introduced a regulatory framework for decentralized autonomous organizations (DAOs) and other entities built on distributed ledger technology (DLT). This marks the first step towards such a framework by a Middle Eastern territory. The new framework allows DAOs to operate legally and issue tokens to their members, providing regulatory clarity for firms in the digital assets sector. Abu Dhabi is aiming to become a crypto hub alongside Dubai, and this move is part of a larger initiative to foster initiatives in the broader blockchain and digital asset realm.