Major global cryptocurrency exchange FTX is expanding its operations in the United Arab Emirates by receiving a virtual asset license in Dubai.
The license has apparently been granted under a new cryptocurrency law passed in Dubai last week, with Dubai Virtual Asset Regulatory Authority (VARA) becoming a major crypto regulator in the emirate’s special development and free zones.
According to FTX founder and CEO Sam Bankman-Fried, FTX has received Dubai’s “first and so far only” digital exchange license.
Binance also has obtained a crypto license in Dubai under the same program, according to a report from Bloomberg. The World’s Largest Crypto Exchange By Trading Volumes Was Reportedly working to receive an operating license in Dubai last week.
Really excited to receive Dubai’s first (and so far only) digital asset exchange license!
— SBF (@SBF_FTX) March 15, 2022
As part of its push in Dubai, FTX plans to establish a regional headquarters in the city and offer crypto derivative products with centralized counterparty clearing to institutional investors, Bankman-Fried said.
FTX’s European and Middle Eastern division FTX Europe is one of the anchors in the Dubai World Trade Center, which became a comprehensive zone and regulator of cryptocurrencies, products and operators in December 2021. As previously reported, Binance was one of the first crypto exchanges to join a new crypto hub established by the Dubai World Trade Center Authority last year.
“The assurance and credibility that Dubai ensures in meeting these commitments will enable FTX to safely continue its overall strategy to scale to become the first virtual asset service provider to enter global markets in a fully regulated manner” said Patrick Gruhn, head of FTX Europe. †
Related: Binance Granted Crypto Service Provider License in Bahrain
CoinTelegraph has contacted the authorities of Binance, FTX and Dubai for more information, but has not received any comments at the time of publication
The UAE emerged as one of the most crypto-friendly countries as authorities in the capital Dubai have stepped up efforts to facilitate the development of the crypto industry. As previously reported, the UAE regulators came up with multiple schemes last year to allow crypto trading in various free economic zones in Dubai.