FTX, the major global cryptocurrency exchange, has announced that it is expanding operations in the United Arab Emirates (UAE) by receiving a virtual asset exchange (VAX) license in Dubai.
It has been reported that the license is granted under a new cryptocurrency law adopted last week in Dubai, with Dubai Virtual Asset Regulatory Authority (VARA) becoming a major crypto regulator in the Emirate’s special development and free zones.
However, the VAX license allows FTX to operate within Dubai‘s crypto market model, which operates in compliance with global standards established by major regulators like the Financial Action Task Force.
Sam Bankman-Fried (SBF), the founder and CEO of FTX, said that FTX has received the “first and so far only” digital exchange license from Dubai.
“FTX is proud to be the first licensee under Dubai's prudential supervision regime.”
The report said that Binance has also obtained a crypto license in Dubai under the same program. The world‘s largest crypto exchange by trading volumes was reportedly working to receive an operational license in Dubai last week. He said that as part of its push in Dubai, FTX plans to establish a regional headquarters in the city and offer crypto derivatives products with centralized counterparty clearing to institutional investors.
Likewise, FTX’s European and Middle Eastern division FTX Europe is among anchors in the Dubai World Trade Centre, which became a comprehensive zone and regulator of cryptocurrencies, products, and operators in December 2021. As previously reported, Binance was among the first crypto exchanges to join a new crypto hub established by the Dubai World Trade Centre Authority last year.
Patrick Gruhn, the head of FTX Europe, said:
“The certainty and credibility that Dubai assures in its adherence to these commitments allows FTX to safely pursue its overall strategy of scaling towards becoming the first virtual-asset service provider to enter global markets in a fully regulated manner.”
Thus, the UAE emerged as one the most crypto-friendly countries as authorities in its capital city of Dubai have been ramping up the efforts to enable the crypto industry’s development. As previously reported, UAE regulators came up with multiple arrangements to allow crypto trading in several free economic zones in Dubai last year.