On April 25, 2022, Abu Dhabi Global Market (ADGM) reported that US-based cryptocurrency exchange Kraken has turned into the first worldwide virtual assets exchange group in the United Arab Emirates to get a full monetary license from the ADGM.

"Kraken is the first global cryptocurrency exchange to receive a Financial Services Permission (FSP) license to operate a regulated virtual asset exchange platform in the ADGM to service the needs of the Middle East and North Africa region," ADGM said in a statement on Monday.

The regulator said Kraken has met all endorsement conditions from the Financial Services Regulatory Authority (FSRA) of the ADGM to work as a Virtual Asset Multilateral Trading Facility (MTF) and caretaker in Abu Dhabi and the more extensive UAE.

Kraken has established its Middle East Head Quater in ADGM, the assertion said. ADGM is a global monetary focus and free zone in Abu Dhabi, the capital of the UAE.

"Kraken will be the first global virtual assets exchange group in the UAE to offer investors the ability to invest, trade, withdraw and deposit virtual assets (Bitcoin and Ether) directly in local AED currency," it said.

Curtis Ting, managing director of EMEA at Kraken, said, “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 delighted to have received full approval and to soon launch regulated AED markets that will sit adjacent to Kraken’s industry-leading ecosystem of crypto products, including staking, spot markets across 120+ crypto assets, regulated futures, and our forthcoming NFT marketplace. We are excited to expand our products and services in the MENA region in the months and years ahead," Ting said.

Recently, the global cryptocurrency exchange Binance got on a basic level approval from ADGM to work as a broker-dealer in virtual assets.

The UAE has arisen as a favored jurisdiction for crypto trades. FTX, one of Binance's top rivals, got a virtual asset service provider (VASP) permit in Dubai last month.

Joyashree Dey

CBW - External Analyst

INDIA