Kraken secures a Full-Financial License in UAE
The Middle East has long been a hotbed for cryptocurrency firms and exchanges, with Kraken being the most recent to be granted a license by the Abu Dhabi Global Market (ADGM). Kraken claims to be the first worldwide virtual asset exchange group to receive a complete financial license from the UAE’s ADGM. The grant of a full financial license to a crypto-native company is proof of wider crypto adoption
The Announcement
ABU DHABI, UNITED ARAB EMIRATES — Kraken, a US-based cryptocurrency exchange, is expanding into the Middle East and will establish its regional headquarters in Abu Dhabi after obtaining a full license to operate a regulated trading platform in the UAE.
Kraken will become the first cryptocurrency exchange to offer direct financing and trading in UAE dirhams against bitcoin, ether, and a number of other virtual assets after getting regulatory approval from the ADGM and the Financial Services Regulatory Authority for its local launch.
“It’s vital for us to guarantee that local investors and traders have access to local currencies in order to encourage access to global markets and global liquidity,” Ting continued. The Middle East is one of the world’s fastest-growing cryptocurrency markets, according to Chainalysis. Chainalysis data shows that the UAE trades roughly $25 billion in cryptocurrency each year.
Our Analysis
The grant of a full financial license to a crypto-native company is proof of wider crypto adoption. This set of actions will act as encouragement and boost innovation in other crypto-native companies. With such encouragement, Defi can soon become the next evolution of finance.
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