Major cryptocurrency exchange FTX, recently received a virtual asset license from Dubai regulatory authorities. The platform is also planning to establish its regional headquarters in Dubai.
FTX Gets Dubai Virtual Asset License
FTX continues its expansion into the Middle East, with the platform’s European division, FTX Europe, recently awarded a regulatory license to operate as a cryptocurrency exchange in Dubai (according to Bloomberg.) Sam Bankman-Fried, CEO of FTX, said that the company is the first to receive such an approval in Dubai
Bankman-Fried added that the platform will offer “complex crypto-derivatives products with centralized counterparty clearing to institutional markets.” The license approval came following the recently enacted Dubai Virtual Asset Regulatory Law, along with the creation of the Dubai Virtual Asset Regulatory Authority (VARA).
The law states that anyone seeking to offer virtual asset services must set up a presence in Dubai. Along with the license, FTX will also establish a regional headquarters in the Emirate. Commenting on the latest development was FTX Europe Head Patrick Gruhn, who said:
“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.”
The United Arab Emirates has been working towards positioning itself as a global crypto hub. As such, the country has created cryptocurrency-friendly policies to attract some of the biggest players in the industry.
Binance, the largest cryptocurrency exchange by market capitalization, also obtained a Dubai crypto license, according to Bloomberg. Earlier in March, there were reports that the exchange was in talks with the Dubai World Trade Center free zone to obtain a regulatory license.
Sam Bankman-Fried Big on Global Expansion
FTX does not seem to be showing any signs of slowing down in its mission to spread its cryptocurrency services across the globe. Early in March, the company announced that it received a license from Cyprus’ financial market regulator, the Cyprus Securities and Exchange Commission (CySEC), to launch FTX Europe.
FTX Europe will offer the exchange’s products and services to customers in Europe through a “licensed investment firm with passportable licenses.” While the European division is headquartered in Switzerland, the firm also has a regional headquarters in Cyprus.
CEO Sam Bankman-Fried said:
“As we continue to grow, we are constantly looking at opportunities to become appropriately licensed and regulated in every market we enter. We’ll be interacting with regulators in various countries across Europe to continue to provide a safe and secure environment for people to trade crypto.”
In January, the global crypto exchange unveiled a $2 billion venture fund to invest in cryptocurrency startups. Investment can start from $100,000 and go up to “hundreds of millions of dollars”, according to reports.
In the same month, FTX raised $400 million in two funding rounds. The first $400 million brought the company’s valuation to $8 billion, while the Series C funding skyrocketed the cryptocurrency exchange’s value to a staggering $32 billion.