The regulator stated that Kraken will be the first UAE virtual assets exchange group to allow investors to trade, withdraw, and deposit virtual assets (bitcoin, ether) in local AED currencies.
Kraken establishes Middle East Headquarters
Abu Dhabi Global Market (ADGM), Monday announced that Kraken, a cryptocurrency exchange, has been granted a full financial license by ADGM.
Abu Dhabi Global Market, also known as Abu Dhabi Capital (UAE), is an international financial centre and free zone. It is the most regulated jurisdiction for virtual asset activities in the Middle East & North Africa (MENA).
The regulator explained:
Kraken was the first cryptocurrency exchange worldwide to be granted a Financial Services Permission license (FSP) to operate a virtual asset exchange platform that is regulated in the ADGM to serve the Middle East and North Africa needs.
"Kraken has satisfied all approval conditions of the Financial Services Regulatory Authority(FSRA)of ADGM to operate a Virtual Asset Multilateral Trading Facility, (MTF), and Custodian within Abu Dhabi and the larger UAE," reads the announcement.
The regulator noted that Kraken had established its Middle East headquarters at ADGM.
Kraken, the UAE's first virtual asset exchange, will offer investors the opportunity to trade, withdraw, and deposit virtual assets (bitcoin, ether), directly in local AED currencies.
The FSRA published a discussion document on decentralized finance (defi) earlier in the month. The regulator published a paper in consultation proposing major amendments to its capital market framework, which included crypto assets.
The FSRA also approved Binance, a cryptocurrency exchange, in-principle approval for this month's "to operate in the capacity of a broker-dealer with virtual assets."