With the new license, the FTX cryptocurrency exchange headed by Sam Bankman-Fried will offer cryptocurrency derivatives to institutional investors in Dubai.
The license was granted under the new cryptocurrency law adopted on March 9, 2022 in Dubai, with the Dubai Virtual Assets Regulatory Authority (VARA) becoming the main cryptocurrency regulator in the country's special free and development zones.
According to FTX founder Sam Bankman-Fried, FTX is so far the first and only company to receive a license to operate in Dubai.
Earlier, according to a report by Bloomberg, Binance exchange has also obtained a license to become a cryptocurrency trading service provider in Dubai. During this time the world's largest cryptocurrency exchange in terms of trading volume is experiencing a lot of activity in the UAE.
🎉🎉🎉https://t.co/oYkWBHsvf9 via @technology
— FTX (@FTX_Official) March 14, 2022
Bankman-Fried said that the FTX exchange planned to build and set up a working headquarters in the city, offering cryptocurrency derivatives, becoming a legitimate pioneer in the rich Middle Eastern city.
The FTX division in the Middle East and Europe is among the anchors at the Dubai World Trade Center, which has become a comprehensive region and regulatory body for cryptocurrencies, products and operators by December 2021. In a previous article, Binance was also one of the first cryptocurrency trading platforms to join the new cryptocurrency hub established by the Dubai World Center in 2021.
In 2021, FTX has attracted the attention of many high-calibre investors and has successfully raised $400 million. With a valuation of US$32 billion, the FTX exchange is fully in line with the UAE's development criteria and future orientation. Dubai is not only a tourist city but also an ideal destination for tech start-ups, the center of cryptocurrencies in the future.
Patrick Gruhn, FTX Manager in The European Market said: "Under dubai's commitment to FTX, ftx exchange is qualified to build its upcoming business strategies, aiming to become a leading provider of professional crypto asset services."
Binance, FTX and Dubai have not yet answered any questions when it comes to this issue.
The UAE is widely mentioned as one of the friendly countries of the cryptocurrency industry, and lawmakers here are stepping up efforts to stimulate the development of this potential market, strongly applying blockchain technology in the future.
