With the new license, Sam Bankman-Fried’s crypto exchange FTX will be able to expand its services in the United Arab Emirates and provide crypto derivatives to institutional investors in Dubai.
The license is issued under a new cryptocurrency law which was passed last week in Dubai, with the Dubai Virtual Asset Regulatory Authority (VARA) becoming the Emirate’s primary crypto regulator in special development and free zones.
The VAX license enables FTX to operate inside Dubai’s crypto market model, which adheres to worldwide norms set by key regulators such as the Financial Action Task.
In a Twitter post, Sam announced his excitement of receiving the first and currently the only digital asset exchange license from Dubai. He also remarked that FTX is thrilled to be the first licensee under Dubai’s prudential monitoring scheme.
According to Bloomberg, Binance has also secured a crypto license in Dubai through the same framework.
Last week, the world’s largest crypto exchange by trading volume was said to be working on obtaining an operational license in Dubai.
FTX intends to create a regional office in Dubai and provide institutional investors with crypto derivatives products with centralized counterparty clearing as part of its campaign in the city, according to Bankman-Fried.
The Dubai World Trade Centre, transformed into a substantial zone and regulator of cryptocurrencies, products, and operators in December 2021, now includes FTX Europe, the company’s European and Middle Eastern section.
Binance was one of the first crypto exchanges to join a new crypto hub formed by the Dubai World Trade Centre Authority last year, as previously reported.
The United Arab Emirates has evolved as one of the most crypto-friendly countries, with authorities in Dubai, stepping up initiatives to support the industry’s growth. Last year, UAE regulators came up with a number of arrangements to allow crypto trading in numerous free economic zones.
We are yet to observe the development of the regulatory framework in the region and how the major global operators will evolve there.
Photo by Nick Chong