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Updated by Albert Fang
News emerged that three leading crypto exchanges had received licences to conduct regulated trading in the UAE. These exchanges include Binance, Kraken, and Bybit. And now, the company has announced its presence in the region with the opening of a regional headquarters in the UAE. What’s next for Kraken? Well, the company has plans to launch trading pairs in the dirham.
The announcement of Kraken receiving a licence from the Abu Dhabi Global Market for cryptocurrency trading in the UAE is significant, as it follows other major exchanges’ moves to enter the region. Binance, founded in 2011, has gained in-principle clearance from the UAE government, paving the way for a move to the Middle East. Last month, FTX received its licence to operate in the UAE. Both companies hope to establish regional headquarters in Dubai.
Abu Dhabi Global Market overseas institutions that operate within the country. By acquiring a licence to operate in the region, Kraken will be allowed to offer trading and funding in the region’s national currency, which means that UAE users can trade in the crypto-asset market in local dirhams.
Kraken
The goal of Kraken MENA is to provide users with regulated access to digital assets and custodial services. Since ADGM introduced its regulatory framework for virtual assets in 2018, it has become a leading global hub for the crypto-asset industry. The exchange will open a regional office in Abu Dhabi and offer trading pairs in UAE dirhams. It plans to begin operations there in the second or third quarter and have a regional executive team based in the country. The company expects to scale post-launch.
After months of negotiations, Kraken has finally received a licence to offer crypto-asset trading in the United Arab Emirates (UAE). The newly-awarded licence covers custodial services, investment portfolio management, and custodial services.
UAE regulators have recognized Kraken’s efforts to secure global licences. The company views the IPA as an essential step toward its ambition to be the MENA region’s most regulated virtual asset provider. Moreover, the new regulation aims to position Abu Dhabi as the fastest-growing virtual asset hub and digital economy.
With the new licence, Kraken and Binance will be able to offer limited exchange products and services to both pre-qualified investors and professional financial service providers. It will also monitor a licensed VARA service provider and offer retail trading services. The new licence will allow Kraken to establish a blockchain technology hub in the Dubai World Trade Centre. Moreover, the company hopes to open new markets for crypto assets in the UAE through the licence.
Abu Dhabi’s regulatory framework on cryptocurrencies
While other jurisdictions worldwide have yet to establish a comprehensive regulatory framework for cryptocurrencies, the UAE is on the right track. It is one of the few places to make crypto assets legal.
The regulatory framework in Abu Dhabi includes digital funds, derivative products, and cryptocurrencies. In recent months, the UAE has embraced this emerging industry by establishing the Abu Dhabi Exchange and the launch of a blockchain-based voting system.
Abu Dhabi has made its goal of becoming a crypto hub a priority. To cut its reliance on gas and oil, the UAE is investing in financial technology and innovation, including cryptocurrencies. The Abu Dhabi Global Market already has three licensed crypto exchanges.
Regulators say that three more are in the works for soft launches. Hundreds of other exchanges are still waiting for the green light. Chief executive of the Financial Services Regulatory Authority, Emmanuel Givanakis, said that the next few launches are expected to happen in the first half of 2019.
First global exchange for offering virtual assets trading in dirhams
The UAE has become a hub for cryptocurrency trading, and Kraken is poised to tap into the region’s growing market. Its upcoming launch will allow clients to invest in and trade virtual assets in the local currency. It will give UAE investors and traders access to a new source of international liquidity.
Final Words
The company will be operating from the Abu Dhabi Global Market, an International Financial Centre in the UAE. You can make a crypto investment in https://bitcoin-storm.live/. Senior executives are based in the region. Kraken will operate as a custodian and multilateral trading platform and will be able to offer UAE dirhams as a trading currency. It will make it the first global virtual assets exchange group to offer to trade in UAE dirhams.
Reviewed and edited by Albert Fang.
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Article Title: Kraken Receives Licence For Crypto Trading In UAE
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