As the most regulated blockchain infrastructure platform, Paxos was founded on the principles of consumer protection and oversight. We constantly evaluate and update our compliance program to ensure it is well-positioned to respond to shifting market conditions.
Our commitment to compliance is embedded in Paxos’ DNA and impacts every level of this company. Its rigorous compliance, risk management and corporate controls are built into all aspects of its operations. Notably, Paxos custodies all customer assets bankruptcy-remote and under New York State banking law. This structure provides legal consumer protections as opposed to “constructive trusts” of other stablecoin issuers. Paxos is unquestionably positioned as a regulatory leader within the financial services industry.
This year, Paxos significantly bolstered its compliance team by bringing on a diverse array of pressure-tested talent with proven experience in digital assets, traditional finance and government sectors. Recent Paxos’ compliance efforts not only delivered solutions to elevate and scale compliance capabilities, but also enabled safe product growth and fortified the company’s defenses. Newly implemented tech solutions brought further efficiency to core processes like screening, alerting and investigations, while the team has also strengthened its capabilities in risk management. Paxos is committed to continuing to meet industry standards, and sets an example as a best-in-class program.
With more than 15 years of experience in the global regulatory environment, I have continued to be impressed with Paxos and the incredibly high and self-imposed regulatory standards that Paxos holds itself to. Having overseen compliance programs at Facebook Payments and Western Union, along with serving as a regulator at the French Supervisory Authority – Paxos cares deeply about protections for its consumers, partners and enterprises.
We maintain strict standards so that users can access digital assets safely. We’ve spent the last year making system upgrades and investments in compliance infrastructure, as well as bringing on talented new leaders. Our focused efforts reinforce Paxos’ industry-leading standards and ensure we’re primed to respond to any and all market forces.
Additionally, as announced on July 24, Paxos will deprecate retail services for users on the itBit Exchange whose accounts are inactive with little to no balance. This decision enables Paxos to further streamline its services to focus on serving enterprise platform clients, and to align its compliance efforts with the needs and risk appetites of the core client base.
Paxos will continue to optimize its compliance program and advance its infrastructure to ensure it surpasses industry standards. Paxos is the safest and most reliable blockchain infrastructure company in the market – and these improvements will allow us to continue this work.
