Kraken sets up regional office in UAE
Per a Bloomberg report, Kraken one of the major crypto exchanges received a license to operate its trading platform in UAE. The exchange received green light from regulators to operate as a virtual asset service provider. Crypto news outfit Watcher.guru also confirmed this news in a tweet.
Kraken has since set up its regional headquarters in the capital of the United Arab Emirates (UAE). Despite this, Kraken is not expected to start operations in the country until Q3. This is according to Dhaher bin Dhaher, Chief Executive Officer of Abu Dhabi Global Market’s Registration Authority. Furthermore, the exchange which boasts of more than 8 million users worldwide, will allow users invest, trade, withdraw and deposit assets in the country’s local currency – Dirhams (AED).
The Importance of the License to Kraken
According to Curtis Ting, Kraken’s Managing Director, the AED trading pair option indicates a key step towards providing access to liquidity. it also presents a major link between between the traditional domestic banking institutions and crypto-assets.
In a recent interview with CNBC, Ting said:
For us, it’s really important to facilitate access to global markets and global liquidity by making sure that investors and traders in the region have access to local currencies [trading pair].
For Kraken to achieve this he also added that it “requires us to be integrated with local banking and service provider partners as well as be regulated locally.” Speaking on the the significance of the license in UAE to Kraken, He said, ” this is an important step for us to bring local liquidity to the region.”
UAE Developing Into Crypto Hub
Following a tough stance by countries on crypto regulation, virtual asset service providers have been on the hunt for favorable places to operate. And with UAE’s progressive approach they are looking to expand their presence in the country.
Recent data from Chainalysis shows that the UAE is the third largest crypto market in the Middle East. With a transaction volume of about $26billion, trailing only Turkey and Lebanon. This makes it a viable crypto hub following its favorable regulatory stance.
The Emirate has seen the influx of other major crypto exchanges such as Binance and FTX.
Binance has in essence received approval to operate as a broker-dealer in virtual asset in Abu Dhabi. This came a month after it also secured the license to operate in Dubai. Who have also licensed FTX as a virtual asset service provider last month. While others like Bybit and Crypto.com are also expanding their presence in the region.