Kraken Crypto Exchange Has Been Granted A License In Abu Dhabi

One of the leading crypto exchanges, Kraken, has obtained a license to operate a regulated digital assets platform in Abu Dhabi as crypto adoption grows in the Middle East.

Kraken received a license to operate its virtual asset trading platform in Abu Dhabi and has set up its regional headquarters in the United Arab Emirates capital. 

The company has plans to begin operations during Q2 or Q3 this year, according to Dhaher bin Dhaher, Chief Executive Officer of Abu Dhabi Global Market’s Registration Authority.

With the new license the exchange will allow clients to invest, trade, withdraw and deposit virtual assets directly in dirhams.

Accordign Dhaher, countries around the world are taking a tough stance on crypto regulation, which has pushed virtual asset service providers to expand their presence in the UAE due to its “progressive” approach.

The nation has made moves to attract the world’s largest crypto firms. Abu Dhabi’s ADGM adopted a virtual asset regulatory framework in 2018, while Dubai passed a law to regulate virtual assets last month.

The UAE is the Middle East’s third-largest crypto market, trailing Turkey and Lebanon, with a transaction volume of about $26 billion from July 2020 to June 2021.

In March, Dubai unveiled its new agency, VARA, tasked with virtual asset regulation as its leadership looks to solidify the city’s position in the emerging global digital economy.

Shortly after, Binance announced that it had been granted a virtual asset license in Dubai, as well as has in-principle approval from ADGM to operate as a broker-dealer in virtual assets.

Binance’s approval in Dubai followed FTX, which said it would plan to establish its regional headquarters in Dubai.