Kraken becomes the second cryptocurrency exchange to receive regulatory approval in the UAE, after Binance. The firm may now operate in ADGM, Abu Dhabi’s international financial center, and free zone.
The decision marks an important milestone for Kraken, as it continues to expand its global footprin. And provide a regulated platform for users in the UAE to access various crypto assets.
In addition to this regulatory approval, Kraken also recently launches a new crypto-to-crypto trading service; that allows users in the UAE to trade bitcoin and other cryptocurrencies against several different fiat currencies.
After getting the license, Kraken will now allow local investors to participate in the global cryptocurrency market by launching dirham (AED) trading pairs.
This enables diversification of trade pair options by allowing users to utilize their local currencies rather than the traditional British pound and US dollar.
Establishing relationships with UAE local banks
With this new trading license, the crypto exchange outfit will work with local payment service companies in Abu Dhabi. This, according to Kraken’s managing director Curtis Ting, will aid in bringing worldwide liquidity to the Gulf state.
In addition to the UAE license, Kraken will establish relationships with local banks in Abu Dhabi; giving it access to banking and payment systems that will help support its entry into the UAE market.
Dubai is particularly recognized for having large crypto following and with a yearly trading volume of more than $25 billion.
Curtis Ting says:
“It’s critical for us to provide entrance to the global markets and liquidity by ensuring that; traders and investors in that region have free access to local currencies [trading pair] through our trading platform.”
Crypto exchange concern in the Middle East
Although Kraken only receives one crypto trading license in the Middle East. Binance, its rival, already holds a license to trade cryptocurrencies in both Dubai and Bahrain.
As the crypto trading market in the Middle East continues to grow. It will be interesting to see if more exchanges enter the region and obtain the necessary licenses to operate.
Following the inflow of several regulated crypto exchanges in the Middle East, local companies are also entering the cryptocurrency space.
For example, Citizens School in Dubai began taking Bitcoin (BTC) and Ethereum (ETH) as tuition payments, with crypto payments being immediately converted into dirhams.
With the entry of more institutional investors and the growth of awareness surrounding cryptocurrencies, we will likely see even more institutions start accepting crypto as a form of payment shortly.
Summary
Kraken, one of the largest cryptocurrency exchanges in the world, just receives a license to operate in the United Arab Emirates (UAE).
With this regulatory approval, Kraken is positioning itself to continue its growth in the fast-paced and rapidly evolving world of crypto trading.
As more countries around the world begin to recognize the benefits and potential of blockchain technology and cryptocurrencies, we are confident that Kraken will be at the forefront of this exciting new industry.
This latest achievement by Kraken is an indication of its resolve to remain a major global player in the crypto space.
In addition, this news will boost investors’ confidence in the company and its dedication to providing a safe and compliant platform for them to trade on.
