Along with Binance, Crypto.com, and a few other cryptocurrency exchanges, Kraken has been granted permission to operate in the United Arab Emirates.
According to recent reports, Kraken has received a Financial Services Permission (FSP) license from the Abu Dhabi Global Market (ADGM) to operate as a cryptocurrency broker-dealer. The exchange will also establish regional headquarters in Abu Dhabi.
Kraken will operate in the UAE as a Virtual Asset Multilateral Trading Facility (MTF) and Custodian, making it the region’s first crypto exchange to get an exclusive license. According to the news release, this will allow Kraken to provide direct trading in UAE’s currency Dirham in exchange for Bitcoin and other crypto-assets.
According to Dhaher bin Dhaher, Chief Executive Officer of the Abu Dhabi Global Market’s Registration Authority, the exchange will most likely begin operations in the second or third quarter of this year.
Because of its recent positive position in the sector, the United Arab Emirates has become one of the top destinations for bitcoin firms to establish regional outposts. The UAE’s prime minister said in March that the government would adopt crypto-friendly legislation and create an independent institution to grant licenses and supervise the compliance system.