FTX is expanding its operations in the UAE by acquiring a Virtual Asset Exchange (VAX) license in Dubai.
The license is granted under a new cryptocurrency law issued last week in Dubai, where the Dubai Virtual Asset Regulatory Authority (VARA) has become the main regulator of cryptocurrencies in private and free zones in the emirate. The VAX license allows FTX to operate within Dubai’s crypto market model, which operates in accordance with global standards set by major regulatory bodies such as the Financial Action Task Force on Money Laundering.
According to FTX founder and CEO Sam Bankman-Fried, FTX has received the “first and to date only” digital exchange license from Dubai. “FTX is proud to be the first holder of a carefully monitored license in Dubai,” said Bankman-Fried.
According to a Bloomberg report, Binance has also received a crypto license in Dubai under the same program. Last week, it was reported that the world’s largest cryptocurrency exchange, measured in trading volume, was working to obtain an operating license in Dubai.
Bankman-Fried said that as part of its progress in Dubai, FTX plans to open a regional headquarters in the city and provide institutional investors with centrally cleared cryptocurrency derivatives.
FTX Europe and the Middle East FTX Europe is one of the anchors in the Dubai World Trade Center, which became the umbrella and regulator of cryptocurrencies, products and operators in December 2021. As previously reported, Binance was one of the first cryptocurrency exchanges to join the new cryptocurrency hub launched by the Dubai World Trade Center last year.
“The trust and confidence that Dubai has in fulfilling these commitments enables FTX to confidently pursue its comprehensive expansion strategy to become the first virtual asset service provider to enter global markets in a fully regulated manner,” said Patrick Groen, CEO and FTX Europe. .
Related: Binance acquires crypto service provider license in Bahrain
Cointelegraph has contacted the authorities in Binance, FTX and Dubai for more information, but has not received any comments per press time.
The United Arab Emirates has become one of the most crypto-friendly countries as the authorities in the capital Dubai step up their efforts to develop the crypto industry. As previously reported, last year UAE regulators developed several mechanisms to allow the trading of cryptocurrencies in several free economic zones in Dubai.