Kraken, the US-based crypto exchange, is in the process to obtain a license in UAE. This will make it the first exchange in the country offering Dirham trading. The news was released by Kraken’s Managing Director for the Middle East and Europe, Curtis Ting.
Citi has reported that a greater sense of regulatory clarity is the main reason for the entrance of crypto businesses in Abu Dhabi and Dubai.
The Middle East is one of the fastest-growing markets in the cryptocurrency world accounting for up to 7% of global trading volumes.
Kraken is expanding its operation into the Middle East by opening a regional headquarters in Abu Dhabi. The US-based crypto exchange has obtained a formal license to commence a trading platform in the country that is completed legal and regulated.
Crypto Exchange Kraken opens office in UAE. With this development, Kraken becomes the first crypto exchange in the region offering trading and direct funding to businesses and individuals, that too in Dirham against a wide range of virtual assets, bitcoins, ether, etc. Before the launch, the company obtained full clearance from Financial Services Regulatory Authority and ADGM.
Talking to the press, Curtis Ting reported, “We’re incredibly excited to be able to set up our operations right in the ADGM [Abu Dhabi Global Market] itself to operate a virtual asset platform that finally offers Dirham pairs for investors in the region.”
In UAE, the cryptocurrency is third-largest in the region in terms of the trading volume.
The cryptocurrency of almost $25 billion circulates in the UAE economy each year making it the third-largest in the region in terms of the trading volume. According to the data for July 2020 and June 2021, this figure stands at $26 billion for Lebanon and $132.4 billion for Turkey. Kraken was initially launched in the US in 2011and is currently operating in over 60 countries. The launch in the UAE marks a major success for the company in increasing its profitability in the region. The UAE offers more regulatory security for traders due to its clear laws regarding cryptocurrency.
Increasing Crypto Competition in the Region
The world’s largest crypto exchange by volume, Binance is considering expanding its operations into the UAE where cryptocurrency is increasingly becoming mainstream. Binance also obtained approval to operate in the UAE this week. Since then it has started to hire employees for over 100 positions in UAE alone.
Another fellow exchange, Bybit also obtained approval to open its headquarters in Dubai just last month. FTX has also received a virtual-asset license in the country. It seems as if Dubai and Abu Dhabi are going to become major hubs of crypto exchanges.
We’re incredibly excited to be able to set up our operations right in the Abu Dhabi Global Market to operate a platform that finally offers Dirham pairs for investors.
Exchanges in Hong Kong and Singapore are also moving towards creating a fully regulated environment for trading cryptocurrency. Regulated mechanisms will increase trading volumes and attract further investments.
UAE Is on Verge of Becoming the Potential Gray List
The recent market landscape might show UAE winning over the world’s largest crypto companies, but this is also raising flags regarding international scrutiny complaining that the UAE is not doing enough to restrict the flow of shady funds.
According to the recent reports, several crypto firms in the UAE have been overwhelmed with the requests to convert billions of dollars’ worth of virtual assets, as the Russians are seeking a safe haven for their wealth amid the war going in Ukraine.