Kraken becomes the latest crypto exchange to be granted a license to operate in the UAE
The exchange, which has more than eight million global users, has become the latest virtual asset platform to be allowed to be traded by the Registration Authority of Abu Dhabi Global Markets and the Financial Services Regulatory Authority.
Kraken has established a regional headquarters and intends to start operating a fully regulated trading platform in Abu Dhabi by the second or third quarter of this year, says Dhahar bin Dhahar, CEO of the Registration Authority of Abu Dhabi Global Markets.
“We are incredibly excited to be able to set up our operations right at ADGM [Abu Dhabi Global Market] Kraken’s head of EMEA region, Curtis Ting, explained that it is to operate a virtual asset platform itself that ultimately provides dirham pairs for investors in the region. CNBC,
One of Kraken’s competitors, FTX, received a virtual asset service provider license in Dubai in March, while Bybit and Crypto.com are looking to establish a larger footprint in the UAE.
Bybit outlined plans to launch a global headquarters in Dubai by April, while Crypto.com will set up a regional center there and launch a recruitment drive that will allow it to further strengthen its presence in the region.
Kraken attracted by UAE’s forward-looking approach
Virtual asset service providers such as Kraken are targeting the UAE region due to their forward-looking approach to regulating crypto. Patrick Gruhn of FTX Europe said, “The certainty and reliability that Dubai assures in adherence to these commitments is scaling FTX towards becoming the first virtual-asset service provider to enter global markets in a fully regulated manner. allows us to safely pursue its overall strategy.” ,
Thani Al Zayoudi, UAE Minister of State for Foreign Trade, said, “To stay ahead in this rapidly changing industry, we are looking to create a business-friendly ecosystem with strong regulations to attract, retain and enable high-growth companies. are building.”
The UAE began a push earlier this year to issue multiple federal licenses to VASPs to compete with other major financial centers such as Singapore and Hong Kong.
The UAE last year conducted a risk assessment of digital currencies in partnership with 14 public sector and 16 private sector players. A report released from the proceedings concluded that, despite the tendency of cryptocurrencies to be used for criminal purposes, regulation rather than banning was the right approach.
The Dubai Multi Commodity Center has granted 22 licenses, while the Dubai Silicon Oasis Authority has granted at least one.
According to data from Chainalysis, the United Arab Emirates is the third largest crypto hub in the Middle East after Turkey and Lebanon, with transactions worth $26 billion.