Bahamas-based FTX Acquires a Crypto License to Expand its Operations to Dubai
Bahamas-based FTX Acquires a Crypto License to Expand its Operations to Dubai :
FTX, a Bahamas cryptocurrency company, has acquired a full crypto license in Dubai. This license issuance is coming after Dubai launched extensive plans to improve its blockchain industry and become a preferred destination for cryptocurrency companies.
The Backstory
As far back as March 2022, Dubai announced its goal to position the Emirate as a global hub for virtual assets. Before this, specific trade centers in Dubai made moves to regulate cryptocurrencies. However, Dubai created a comprehensive crypto law in March. Among other things, the crypto law was expected to create a regulatory authority for cryptocurrencies, boost crypto services in the Emirate, and prepare Dubai for the emergence of Web 3.0.
Dubai created the Virtual Assets Regulatory Authority (VARA) after it released the crypto law in March. The Dubai government created the VARA to regulate all cryptocurrency-related activities in the Emirate. Shortly after its creation in March, the VARA assigned partial crypto licenses to two crypto exchange companies—FTX and Binance. The VARA recently upgraded FTX’s partial crypto license to a full license.
What does this crypto license mean for Dubai?
The full crypto license allows FTX to provide a wide range of crypto services in Dubai. These services include the provision of crypto derivatives and crypto trading to institutional investors. According to Balsam Danhach, FTX’S Middle East and North Africa director, the crypto license also includes crypto services for retail investors, but this product range will be gradual. The license will be administered by FZE, FTX’s European and Middle East division.
The license also covers NFTs. In this case, FTX will provide custodial services for NFT investors in the Emirate. This license places FTX as a potential competitor of Binance in the territory. However, while Binance has announced its plans to expand operations to other Middle Eastern countries like Bahrain, FTX has not reported such plans.
The VARA is expected to authorize all activities carried out by these crypto companies. The Authority is also expected to implement policies to make the Dubai economy conducive for current crypto companies and attractive enough for future crypto investors.
Projected Benefits of the crypto license
The Dubai government has stated that its crypto license authorization aims to increase Dubai’s Web 3.0 capability and diversify its economy. Alongside these crypto efforts, Dubai has also launched a comprehensive metaverse strategy. All these plans are part of a larger goal to establish Dubai as a global hub for emerging technologies and prepare the Emirate for the Fourth Industrial Revolution. The Dubai government projects that the efforts will collectively provide jobs and increase Foreign Direct Investment.
Conclusion
Dubai has been a global digital hub for decades. The Emirate’s innovativeness is one of the primary reasons for its flourishing tourism industry. The Dubai government is currently implementing strategic efforts to increase its digital capability considering that the Fourth Industrial Revolution will lead to the launch of new technologies. This crypto drive is one of those efforts.
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Last Updated on 11 months by News Editor
