TL; DR Breakdown
- FTX receives permission to establish a headquarters in Dubai
- Binance has also been permittted to expand its services in Bahrain, Middle East.
FTX, a major global cryptocurrency exchange, is expanding its operations in the United Arab Emirates by obtaining a virtual asset license in Dubai.
According to the latest reports, a license has been granted under the new digital currency legislation passed last week in Dubai, with the Dubai Virtual Assets Regulatory Authority (VARA) taking on an enhanced role as a key crypto regulator in specific growth and free zones of the emirate.
According to Sam Bankman-Fried, the founder and CEO of FTX, it is “the first and so far only” digital exchange license in Dubai.
Binance, FTX expands crypto service to the Middle East
Binance has also acquired a digital currency license in Dubai, according to a Bloomberg report. Last week, the world’s largest exchange by volume was reportedly working toward obtaining an operational license in Dubai.
According to Bankman-Fried, FTX aims to establish a regional headquarters in Dubai and provide centralized counterparty clearing for institutional investors.
FTX’s European and Middle Eastern division, FTX Europe, is one of the pillars in the Dubai World Trade Center, which became a cryptocurrency regulatory center and zone in December 2021. Binance was one of the first crypto exchanges to join a new crypto hub established by the Dubai World Trade Center Authority last year.
“The security and trustworthiness that Dubai offers in keeping to these obligations allow FTX to confidently pursue its global expansion plan, becoming the first virtual asset service business to do so through a fully regulated approach,” said Patrick Gruhn, Director of FTX Europe.
The UAE has emerged as one of the most crypto-friendly nations, with authorities in Dubai increasing efforts to allow the industry’s growth. As previously reported, UAE regulators established a variety of arrangements to enable cryptocurrency trading in several free economic zones in Dubai last year.