FTX UAE’s Licensed Crypto Exchange And Sam Bankman-Fried Plan
Major cryptocurrency exchange FTX has announced its launch as the first institution of its kind to get a complete operating licence in the United Arab Emirates (UAE).
“As the first licenced crypto exchange in the UAE, we’re super excited to expand our operations and grow FTX’s presence in the region,” the business said in a tweet.
The exchange will operate under the name FTX MENA FZE across the area. The entity also said that, during its minimum viable product (MVP) phase, its “services are only available to qualified retail investors, accredited investors and institutions”.
According to the business, “This allows us to deliver regulated crypto derivatives products and trading services to qualified institutional investors throughout the area.”
After obtaining a preliminary licence in March 2022, competitor big exchange Binance announced in September 2022 that it has secured the Minimal Viable Product (MVP) licence from Dubai’s Virtual Asset Regulatory Authority (VARA).
“Committed to strong investor and market protection principles, Binance will cater to a clientele approved by VARA who can now benefit from the local banking channels unlocked by this first-of-its-kind regulatory licence. Users will benefit from increased levels of consumer protection by trading on a regulated platform under the supervision of VARA in Dubai,” Binance said in its statement.
The UAE’s authorities are pushing work on launching a digital currency issued by the country’s central bank (CBDC). The Central Bank of the United Arab Emirates (CBUAE) announced at the end of October 2021 that it had completed mBridge, the world’s biggest pilot of CBDC transactions, in collaboration with the Digital Currency Institute of the People’s Bank of China, its Chinese equivalent. According to a statement from the central bank, other partners included the Hong Kong Monetary Authority, the Bank of Thailand, and the Bank for International Settlements.
“This project – the first pilot use of wholesale CBDCs in the MENA region – reflects the CBUAE’s drive to create world-class financial infrastructure and innovative payment systems, which is in line with UAE leadership’s directives to support the UAE’s economic competitiveness and empower the diversity and growth of the nation’s financial sector,” the CBUAE stated.
The Middle East and North Africa (MENA) area is the world’s fastest-growing market, and the United Arab Emirates is the region’s third-largest crypto market, according to a new research by blockchain analysis firm Chainalysis.
