FTX Granted Crypto License With Dubai HQ in Sights

The license follows Dubai’s implementation of a new crypto law which seeks to establish crypto governance and oversight

article-image

Blockworks exclusive art by axel rangel

share

key takeaways

  • FTX has been granted approval to operate crypto derivatives products to large clients within the emirate of Dubai
  • The exchange provider is also looking to set up a headquarters within the emirate’s capital city of Dubai

Major cryptocurrency exchange FTX has been granted a license to operate within the United Arab Emirates (UAE) and will now seek to establish a regional headquarters within the city of Dubai.

FTX is now clear to begin offering crypto derivative products to institutional clients in the city, leveraging a progressive virtual asset licensing regime overseen by the Dubai Virtual Assets Regulatory Authority.

Bloomberg first reported the news Monday. In a statement published by the news outlet, FTX CEO Sam Bankman-Fried said his company would offer “complex crypto-derivatives products” with “centralized counterparty clearing to institutional markets.”

It’s another major win for the exchange provider which is attempting to broaden its services outside the US. Last week, FTX consolidated its European operations under its FTX Europe umbrella to serve clients on the continent and across the Middle East.

At the same time, the emirate of Dubai, which is one of seven others within the UAE, adopted its first piece of crypto legislation — the Dubai Virtual Asset Regulation Law — and established a watchdog to monitor the budding sector.

That law seeks to establish crypto governance throughout the emirate and its free zones with the exception of the Dubai International Financial Center, which is overseen by another regulator, the Dubai Financial Services Authority.

Previously, obtaining a license for crypto services in Dubai required filing an application to the government entity Dubai Multi Commodities Centre (DMCC). Established in 2002, the DMCC is a free zone aiming to boost commodity trade flows into the city.

Certain benefits for setting up shop within the DMCC include zero corporate income tax for the first 50 years, no limits on the transfer of income of a company and no limits on foreign employment. It is unclear where the proposed headquarters will be established in the city. FTX did not immediately respond to a request for comment.

Rival exchange Binance, the world’s largest crypto platform by trading volume, has also been pushing to establish a foothold in the Middle East and has reportedly been green-lit to begin offering its products under the newly established law.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million