Crypto Exchange Kraken Gets License to Operate in Abu Dhabi
Kraken, is known as one of the biggest cryptocurrency exchanges in the world and it has just been granted a license to operate in Abu Dhabi. Kraken allows users to buy, sell, and trade a variety of digital assets.
The company was founded in 2011 and is headquartered in San Francisco. Kraken is available in 48 US states and 176 countries.
Receiving a license for the Abu Dhabi Global Market is a big move for Kraken, as Abu Dhabi is one of the most prominent financial hubs in the world. With this new license, Kraken will be able to offer its services to a much wider audience. This will also help to legitimize the cryptocurrency industry as a whole.
Abu Dhabi is one of the most prominent financial hubs in the world and this new license will allow Kraken to offer its services to a much wider audience. Kraken expects to begin operations in Abu Dhabi during Q2 or Q3, according to Dhaher bin Dhaher, Chief Executive Officer of Abu Dhabi Global Market’s Registration Authority.
Kraken has over 8 million users globally. The new license will allow these users to invest, trade, withdraw and deposit virtual assets directly in dirhams. The ADGM is one of the first financial regulators in the world to offer such a license.
With several countries around the world tightening up crypto regulation, crypto service providers are looking to expand their presence in the UAE due to its “progressive” approach, Dhaher bin Dhaher said in an interview.
He also added that the ADGM is in talks with a number of other crypto service providers and that more licenses are expected to be announced in the coming months.
Oil-rich UAE has been working on creating a regulatory framework for cryptocurrencies since 2018 while Dubai passed a law to regulate virtual assets last month. In 2019, the country’s Securities and Commodities Authority (SCA) released regulations for exchanges and initial coin offerings (ICOs).
Building on Kraken’s license approval, Binance Holdings Ltd., the world’s largest cryptocurrency exchange by trading volume, has an in-principle approval from ADGM to operate as a broker-dealer in virtual assets. The company is also looking to open a bank in the country.
Binance’s co-founder and chief executive officer, Changpeng Zhao, told Bloomberg in an interview last month that Dubai will be his base for the “foreseeable future” and that by “any common interpretation” it’s the company’s headquarters. The company plans to list crypto assets on its platform that comply with Shariah law, he said.
Other regulated cryptocurrency businesses in Abu Dhabi include Luno, which was granted a regulatory sandbox license in early 2019, and custodian services provider Xapo, which received an ADGM operating license last year.
UAE’s approach towards cryptocurrencies is in stark contrast to its neighbors Saudi Arabia and Bahrain who have outright banned digital assets.
What do you think about Abu Dhabi licensing Kraken? Let us know in the comments below.
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