By
Steve Muchoki
May 6th, 2024
FTX has taken a major step towards its crypto development blueprint for Dubai through the acquisition of a virtual asset license in the UAE.
Leading crypto exchange FTX has secured a virtual assets license in Dubai. As a result, the platform now plans to establish a regional headquarter in the famous United Arab Emirates city. FTX co-founder and chief executive officer Sam Bankman-Fried issued a statement on the development:
“FTX is proud to be the first licensee under Dubai’s prudential supervision regime. It’s an honor to be one of the first approved applicants in such a specialized category and we are excited to be able to introduce complex crypto-derivatives products with centralized counterparty clearing to institutional markets.”
Furthermore, Bankman-Fried reiterated FTX’s commitment to spearheading “the digital asset industry in countries that provide a robust regulatory framework.”
FTX’s European arm, FTX Europe, is one of the foremost players in the Dubai World Trade Centre initiative. Apart from Europe, the aforementioned division also covers the Middle East. According to Patrick Gruhn, head of FTX Europe:
“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.”
Under its newly announced Virtual Asset Regulatory Authority (VARA), Dubai is the only global economy to have an independently-regulated environment.
Just Like FTX, Binance Also Secures Crypto Licensing in Dubai
According to inside sources, Binance, also secured a crypto license in Dubai under the same program extended to FTX. Headquartered in the Cayman Islands, Binance also secured approval from Bahrain as a crypto asset service provider. Binance co-founder and CEO Changpeng “CZ” Zhao issued a tweet confirming the Bahrain development:
“#Binance has been granted the first license for a global crypto-asset provider in The Cooperation Council for the Arab States of the Gulf (GCC) by the Central Bank of Bahrain.”
The Dubai and Bahrain approvals mark Binance’s first regulatory approvals in the Middle East region. Furthermore, the approvals are part of a broader scope by the UAE, and the Middle East to attract leading crypto and fintech platforms.
FTX
In January, FTX raised $400 million in a Series C funding round that took the company’s valuation to $32 billion. Founded in May 2019 and headquartered in The Bahamas, FTX is currently one of the world’s largest and most prominent crypto exchange platforms. FTX’s public relations mileage and global profile has come in part from marketing schemes and ads, including one showcased at the last Super Bowl.
Presently, FTX is pushing to gain institutional clients by establishing a new “FTX Access” unit. FTX Access is a one-stop-shop for the exchange’s institutional users who make up two-thirds of the platform’s trading volume. This class of investors will be privy to different advisory, analytical and trade execution tools. For the FTX Access initiative, former Coinbase Global Inc executive Gustavo Miguel will be at the helm of its affairs.