A few years ago, the crypto industry did not need permits and licenses to operate anywhere. It was a truly global industry available all over the world. However, there used to be serious limitations for the crypto industry such as liquidation difficulties and of course massive exchange fees in some countries. The times, they are a changin’ and today it would be a cause for celebration when crypto exchanges receive a license to operate somewhere. After all, a storm of regulations both on a global and national level has hit the crypto industry in the past few years. Naturally, the license hunt creates a race for expansion and currently the Middle East is the frontline. Kraken, the US-based exchange is receiving their license to operate a digital assets platform in the United Arab Emirates (UAE).
Buy and Sell Cryptocurrencies Anonymously on
HiExchange
Crypto Industry Moving in UAE
The Abu Dhabi based regulator Abu Dhabi Global Market (ADGM) has granted Kraken a regional license for operations. Basically, this is the same virtual assets platform operations license that Binance received a few weeks ago.
Subsequently, Kraken can now offer dirham pairs in the UAE and take advantage of their regulated domestic market.
Kraken Managing Director Curtis Ting spoke on their latest achievement in a YouTube interview.
“We’re incredibly excited to be able to set up our operations right in the ADGM itself to operate a virtual asset platform that finally offers dirham pairs for investors in the region…”
According to Ting, the UAE is an exciting part of the region since it benefits from high liquidity and trading volume.
“I think it’s anywhere between six to seven percent of global currency trading volume is happening right out of the Gulf region.
If I remember correctly from recent figures, the UAE itself is second only to Turkey in [crypto trading] volume. I think you’re seeing something like a $25 billion USD volume occurring on an annual basis out of the UAE. That’s quite significant. I think it points to the fact that the region is ready and they’ve been waiting for a regulated offering like ours.”
Binance
A few weeks ago, Binance obtained “In-Principle Approval” to operate in Abu Dhabi as a broker-dealer in digital assets.
This is part of a radical shift in strategies. Previously, the leading crypto exchange Binance and subsequently others further down the rank maintained a rebellious attitude toward local regulations. In fact, they also officially stated that they would not follow EU’s lead on Russian Sanctions. But, push comes to shove and Binance is now a proud licensed operator in Middle East and is looking to expand regulated operations.
The UAE is now bombarded by requests pouring from the crypto industry. Crypto.com and FTX are also waiting down the line for their new permits to tap into the market.
In the meantime, UAE was recently put on a gray list by Financial Action Task Force. FATF is a global financial watchdog. The “gray list” is a strong warning for increased illicit financial activity in a country. It would bring the country under increased monitoring.
