September 15, 2022
  • September 15, 2022

Cryptocurrency exchanges are making their mark in the Middle East

By on March 15, 2022 0

Two cryptocurrency exchanges are making their presence felt in the Middle East.

FTX said it received a virtual asset license in Dubai in the United Arab Emirates.

Complex crypto-derivatives

FTX Europe, a newly created division operating in Europe and the Middle East, is among the anchors of the Dubai World Trade Centre, an economic free zone.

The company will offer “complex crypto-derivative products with centralized counterparty clearing to institutional markets,” said CEO Sam Bankman-Fried.

Binance, the world’s largest crypto exchange, also obtained a crypto license in Dubai under the same program, Bloomberg reported, citing a person familiar with the matter.

Additionally, Binance has received a license to be a crypto service provider in Bahrain, says Managing Director Changpeng “CZ” Zhao tweeted.

The pair of licenses marked the exchange’s first regulatory approvals in the Middle East region.

#binance was granted the first license for a global crypto-asset provider within the Cooperation Council for the Arab States of the Gulf (GCC) by the Central Bank of Bahrain,” he said.

The regulatory requirements “will protect users with strong anti-money laundering and anti-terrorist financing policies,” Zhao said.

“The future belongs to whoever designs it”

The United Arab Emirates is the third-largest crypto market in the region, behind Turkey and Lebanon, according to data compiled by Chainalysis in June 2021.

Dubai announced last week the creation of a regulatory and licensing authority.

“The future belongs to whoever designs it” tweeted Prime Minister of the United Arab Emirates, Sheikh Mohammed bin Rashid Al Maktoum. “Today, through the Virtual Assets Act, we seek to participate in the design of this burgeoning new global industry. Our approach is a leap into the future aimed at developing this industry and protecting all investors. who participate in it.”

Last month, Binance made a $200 million strategic investment in news publisher Forbes.

Binance was founded in China in 2017 but banned from the country during its crypto crackdown.

Financial regulators around the world have targeted Binance, with some banning the platform from certain activities and others warning consumers that it is not licensed to operate in their jurisdictions, Reuters reported.