Abu Dhabi Licenses Kraken: A Cryptocurrency Exchange Establishes Regional Headquarters In UAE’s Capital
Abu Dhabi is competing fiercely for the title of bitcoin capital. Due to the UAE’s emphasis on the acceptance and adoption of cryptocurrencies, the region is ideally positioned to benefit from the rapid expansion of the crypto world. Kraken, a crypto exchange, has been granted an FSP license to establish a government-controlled exchange platform. The exchange can now offer its regulated services in the UAE because it has been authorized by Abu Dhabi Global Market.
In addition to bitcoin, ether, and other virtual currencies, Kraken will offer direct financing and trading in dirhams. The platform activities are planned to begin in the second or third quarter of this year, enabling users to buy, sell, transfer or withdraw cryptocurrencies directly in dirhams. Virtual asset exchange platforms are trying to grow their operations in the UAE because of the progressive attitude of the region toward crypto legislation.
- Is Kraken Compatible With The UAE?
Kraken is among the numerous cryptocurrency exchanges that have executed operations in the United Arab Emirates by implementing stricter laws and regulations. Clients in the United Arab Emirates can access most of Kraken’s services. However, off-chain stakes are not offered to UAE clients. According to Kraken, it is the first cryptocurrency trading platform to be granted a full financial license by ADGM. In addition to trading, it offers custodial services in dirham, enabling clients to access cryptocurrencies seamlessly. Kraken’s regional headquarters have been established in Abu Dhabi, and a qualified senior director will manage its newly formed unit to advance its operations in the regions. The governing council, on the other hand, is unidentified. Kraken’s 8 million users will be able to trade cryptocurrency assets after receiving an FSP license from the UAE.
- An Impression Of Greater Regulatory Clarity Thrives Crypto Businesses In Abu Dhabi
Entrepreneurs, developers, business owners, and operators are flocking toward establishing their foothold in UAE due to its superior regulatory clarity. The region will be making a powerful presence in the crypto world, metaverse, and web3 because it shares a strong sense of legal framework. The oil-rich United Arab Emirates has increased its attempts to capture the world’s leading crypto businesses. Similarly, Kraken ensures that investors and traders in the region have access to the local currency to facilitate access to global markets and liquidity.
- The Middle East As The Most Favored Location For Digital Asset Operations
Due to its transparent regulatory system, many cryptocurrency exchanges prefer to locate their headquarters in the Middle East. The region is establishing itself as a powerhouse for both web3 and cryptocurrency. The UAE is one of the most financially innovative countries, according to Curtis Ting. UAE is the third-largest crypto market in the Middle East with an estimated transaction volume of over $26 billion, making it the most viable area for crypto business. Market participants consider the UAE a crypto-friendly region because of its robust regulatory framework, which has attracted gigantic trading volumes in an intensely complex world.