Abu Dhabi Global Markets (ADGM) has reported that it has granted Kraken Group a license to operate a virtual asset exchange in the Financial Free Zone. ADGM noted that Kraken is the first virtual assets exchange in the United Arab Emirates (UAE) to receive a full finance license. Kraken aims to provide access to virtual assets in the UAE currency Dirham through regulated funding, trading and custodial services.
Kraken Group was started 11 years ago. It has more than 9 million customers in about 60 countries. Dubai, the main business hub of the UAE, is also attracting cryptocurrency firms. Earlier last month, UAE Prime Minister Sheikh Mohammed bin Rashid Al Maktoum signed a bill for virtual assets into law. Simultaneously, the Virtual Asset Regulatory Authority (VARA) was created to control the crypto segment. VARA also has the right to punish those who violate the new law. Apart from imposing fine on violators, it can also shut down their business. of many countries cryptocurrencies Despite the apprehensions about this, the UAE is trying to push this segment through regulation.
Under the law, residents of Dubai must register with VARA before engaging in crypto-related activities. Apart from this, businesses related to virtual assets such as crypto exchanges will also have to provide details to VARA. The purpose of enforcing the law relating to the crypto segment in Dubai is to enforce international standards and grow the industry. This will also ensure security and transparency for crypto investors.
Joined major crypto exchanges earlier this month Binance also received the necessary approvals to operate as a broker and dealer of digital assets, including cryptocurrencies, in Abu Dhabi. Binance holds a license to offer services in three regions of the United Arab Emirates (UAE). The other regions are Dubai and Bahrain. Binance will also help build a blockchain technology hub at the Dubai World Trade Center (DWTC).