Kraken Receives UAE License to Operate as a Regulated Crypto Exchange
The exchange joins several counterparts plotting moves to or gaining licenses in the United Arab Emirates.
Apr 25, 2022 at 9:31 a.m. UTCUpdated May 11, 2023 at 5:39 p.m. UTC
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Abu Dhabi's skyline. (Nick Fewings/Unsplash)
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Crypto exchange Kraken has received a Financial Services Permission (FSP) license from the Abu Dhabi Global Market (ADGM) to operate a regulated exchange platform in the United Arab Emirates (UAE).
- The ADGM is a free zone for financial companies to set up shop in the UAE capital and provide services to users within the region. Kraken would service the needs of the Middle East and North Africa (MENA) region, according to a press release shared with CoinDesk.
- Kraken met all approval conditions from the Financial Services Regulatory Authority (FSRA) of ADGM to operate as a "virtual asset multilateral trading facility" (MTF) and custodian in Abu Dhabi and the wider UAE, the release said.
- Kraken says it is the first crypto exchange to receive a full financial license from ADGM and aims to provide seamless access to cryptocurrencies through regulated funding, trading and custodial services in dirhams, a local currency.
- Kraken will facilitate investing, trading, withdrawals and deposits of bitcoin and ether directly in the local currency.
- Kraken joins several exchanges setting up shop in the UAE, following stricter rules and tighter regulations for crypto businesses worldwide. Binance, Crypto.com and Bybit set up a presence in Dubai earlier this year as the emirate adopted a friendlier approach toward crypto businesses.
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Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.