Popular cryptocurrency exchange Kraken has secured a Financial Services Permission (FSP) license from Abu Dhabi Global Market (ADGM) to operate as a regulated virtual asset exchange platform in its jurisdiction. This makes Kraken the first crypto exchange to do so.
Kraken Bags Full Financial License in Abu Dhabi
According to the official statement from the regulator, the approval will give Kraken users in the region the ability to buy, sell, withdraw, and deposit digital assets directly in the United Arab Emirates Dirham (AED).
Kraken has also set up a regional headquarters in Abu Dhabi to push its operations in the Middle East and North Africa (MENA) region.
“The UAE is one of the most financially innovative jurisdictions in the world, with region-leading crypto participation rates by both consumer and professional investors. The ADGM and its financial regulator have been true pioneers for global crypto regulation. We are excited to expand our products and services in the MENA region in the months and years ahead,” Curtis Ting, Managing Director of EMEA at Kraken, said.
ADGM is reportedly one of the first regulators to establish a friendly regulatory framework for digital assets in the region.
Dhaher bin Dhaher, CEO of the Registration Authority at ADGM, said the regulator “has been doubling-down its efforts in accelerating new growth and investment opportunities, like the virtual assets sector, while supporting the financial sustainability and the economic diversification of Abu Dhabi.”
UAE Becoming a Crypto Hub
As UAE regulators continue to set up crypto-friendly regulations, the region is fast becoming a hub for crypto startups.
In March, leading crypto exchange FTX received a virtual-asset license in Dubai and plans to set up a regional headquarters in the city, Coinfomania reported. Shortly after, the world’s largest crypto exchange, Binance, disclosed it had secured a virtual asset license from Dubai’s Virtual Asset Regulatory Authority (VARA).
Other crypto firms, including Bybit and CryptoCom, are also planning to set up offices in the city of Dubai.