The cryptocurrency exchange Kraken, amid its fast-rising growth in the United Arab Emirates, is set to launch an outlet in Abu Dhabi where the exchange also wishes to establish its regional headquarters.
Based on statements made by Dhaher bin Dhaher, who is presently the Chief Executive Officer (CEO) of Abu Dhabi Global Market’s Registration Authority during an interview with CNBC, the services of the exchange will be fully available in UAE either by Q2 or Q3.
Kraken which is a United States-based crypto exchange was established 11 years ago and is available in over 60 countries globally, although some countries like Iran have been listed as not subscribing to its services, even while in the Middle East.
The exchange boasts about 9 million users worldwide and has a trading volume of $25 billion in cryptocurrencies. The exchange also operates as a bank offering both fiat currency and cryptocurrencies trade. On its platform, there is a listing of about 95 crypto coins including Bitcoin (BTC) and Ethereum (ETH).
Middle East Crypto Transition Framework Gradually Takes Shape
While considering expansion into the Middle East and other regions, the exchange is keen on operating in a regulated market that aligns with structures and regulations put in place to guard the growth of cryptocurrencies.
A favorable framework for the adoption of virtual assets service providers (VASP) had previously been put in place by the UAE, introducing government agencies to serve as watchdogs in the crypto and financial space, one of which is the Security and Commodities Authority (SCA).
With this enormous achievement, Kraken will be the initiator of virtual Dirham trading, alongside first-hand funding with a license received from the global market regulator of Arab Dhabi in the UAE and the Financial Services Regulatory Authority (FSRA). It is envisaged that with this Kraken entry, the virtual Dirham use will overshoot that of the conventional cryptocurrencies like Bitcoin, Ethereum, and others.
The Middle East is experiencing an influx of Virtual Asset Service Providers (VASPs) in its markets and is globally paraded to hold 7% of the crypto trading volume.
The world’s largest cryptocurrency exchange, Binance received approval from the financial watchdogs in Abu Dhabi to trade digital assets in the country, after it had also been conferred with a license by the Central Bank of Bahrain. Away from private cryptocurrencies, Qatar Central Bank (QCB) also announced its intention to join the race for its central bank digital currency (CBDC) last month.