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•Third crypto company to receive a provisional charter.
•To receive the final charter, they need to execute business plans in 18 months.
•Indicates that federals are becoming more considerate towards crypto businesses.
The US Office Comptroller of the Currency (OCC) has finally granted a provisional trust charter to Paxos, the blockchain company primarily famous for its stablecoin.
Paxos Joins Anchorage and Protego to Regulate as Federal Crypto Banks
Paxos becomes one of the three cryptocurrency companies to receive a federal trust charter from the OCC. Previously, Anchorage and Protego were the other two crypto companies that receive approval to operate federally as crypto banks. Crypto exchanges Kraken and Avanti were also approved as state-regulated crypto banks. This preliminary charter will allow the new Paxos National Trust to become a federally regulated crypto entity that will offer stablecoin management, payment, and other services.
The OCC Approves the Business Strategy of Paxos, Says the General Counsel
The general counsel of Paxos, Dan Burstein, said the preliminary charter indicates that the OCC finds its business plan safe. He added that the OCC is deeming the activities they conduct as the activities that a National trust can carry out. To receive the final charter from the OCC, Paxos has to execute its business plans in the next eighteen months and show that it operates safely. However, Burstein believes that Paxos will receive the final charter before the end of the stipulated time.
Moreover, it is a sign that regulators are beginning to accept the cryptocurrency community. Previously, the regulators used to be very cautious of the activities because the crypto community is still young and prone to hacks and criminal activities.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
