Abu Dhabi Global Market (ADGM) has granted famous crypto exchange platform, Kraken, a Financial Services Permission (FSP) license to operate as a regulated virtual asset exchange platform in its jurisdiction. Kraken is the first cryptocurrency exchange to do so.
According to the regulator’s official announcement, the permission will allow Kraken users in the region to buy, sell, withdraw, and deposit digital assets directly in United Arab Emirates Dirham (AED).
Kraken has also established a regional office in Abu Dhabi to expand its activities throughout the Middle East and North Africa (MENA).
According to reports, ADGM was one of the first regulators in the region to build a supportive regulatory environment for digital assets.
“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.
Dhaher bin Dhaher, CEO of the ADGM Registration Authority, stated that the regulator has been double down on advancing new development and investment prospects, such as the virtual assets industry, while supporting Abu Dhabi’s financial sustainability and economic diversification.
As officials in the UAE continue to implement crypto-friendly rules, the region is quickly becoming a hotbed for crypto companies.
Leading cryptocurrency exchange FTX got a virtual-asset license in Dubai in March and wants to establish a regional headquarters in the city. Binance, the world’s largest cryptocurrency exchange, said shortly after that it had obtained a virtual asset license from Dubai’s Virtual Asset Regulatory Authority (VARA).
Other cryptocurrency companies, such as Bybit and CryptoCom, are aiming to open headquarters in Dubai.