Major cryptocurrency exchange FTX will now attempt to create a regional headquarters within the city of Dubai after receiving approval to operate within the United Arab Emirates (UAE).
By utilizing a modern virtual asset licensing framework supervised by the Dubai Virtual Assets Regulatory Authority, FTX is now authorized to start providing crypto derivative products to institutional clients in the city.
The news was initially released by Bloomberg on Monday. Sam Bankman-Fried, the CEO of FTX, claimed in a statement that his company would provide “centralized counterparty clearing to institutional markets” for “complex crypto-derivatives products.
Another significant victory for the exchange provider, which is working to expand its offerings outside of the US. To better serve its clients in Europe and the Middle East, FTX last week combined its European operations under the FTX Europe brand.
The Dubai Virtual Asset Regulation Law, one of seven emirates in the United Arab Emirates, was implemented at the same time as a watchdog was set up to keep an eye on the developing industry. Dubai is one of the eight emirates in the UAE.
With the exception of the Dubai International Financial Center, which is under the control of a different regulator, the Dubai Financial Services Authority, that law intends to establish crypto governance throughout the emirate and its free zones.
Prior to now, the Dubai Multi Commodities Centre, a government organization, was where applicants for licenses to provide crypto services in Dubai had to submit their applications (DMCC). The DMCC is a free zone that was established in 2002 with the goal of increasing commodity trade flows into the city.
Zero corporate income tax for the first 50 years, no restrictions on a company’s ability to transfer its income, and no restrictions on hiring foreign workers are just a few advantages of setting up shop in the DMCC. Where in the city the projected headquarters would be located is unknown. A request for comment from FTX was not immediately complied with.
conflict exchange In an effort to gain a foothold in the Middle East, Binance, the largest cryptocurrency trading platform in the world by trading volume, has apparently received approval to start marketing its products in accordance with the recently passed legislation.