UAE’s proactive regulatory perspective is aiming to keep crypto industry safe
The cryptocurrency market or crypto industry or better say industry is struggling in the face of regulatory uncertainty in several countries around the world, including the United States. However, Abu Dhabi’s crypto space is thriving due to its strong legal framework.
The Sheikh Zayed Grand Mosque in Abu Dhabi
The Abu Dhabi Global Market (ADGM) currently has three licensed cryptocurrency exchanges. According to financial center regulators, there are three more in the pipeline for a soft start. In addition, dozens of other exchanges are awaiting approval.
In an interview with local media, financial services regulator CEO Emmanuel Gibanakis said the “next launch” will take place early next year, awaiting final approval.
He also announced that six other companies, including both the trading platform and cryptocurrency custody services, are also planning to do business in the region. In addition, “many other companies are looking for applications.” According to
Givanakis, Finance Free Zone regulator have a “rigorous approach” to approving licenses. The main focus is on ensuring that the entity is “high quality”. The Watchdog was the first to introduce a comprehensive framework for trading digital assets online. He refined the guidelines further. In particular, to mitigate risk and make financial centers more attractive not only to local start-ups, but also to established regional and domestic businesses.
“Both the newly formed and the ones in the pipeline represent a combination of international and regional players,” Givanakis added. He further explained that the two groups would work together to keep operations safe, emphasizing the adaptability and appeal of the FSRA’s regulatory framework.
Well, some notable names are Kraken and Huobi. Both have reportedly begun the process of establishing a base in the region.
Regulators have found that most of the western powers are also not strict about cryptocurrencies. Instead, they devised a framework to put them within regulatory limits. Yet, he said:
“The reason why this framework was built is that firstly there simply were not many robust frameworks around the globe and a lot of players in the market aimed to be regulated. This means that they wanted to be open and transparent.”
Singapore is another city-state where has flourished under regulatory clarity. This country is considered to be one of the primary global crypto hubs. Even after the license has been granted, Singapore regulators have granted exemptions to many crypto companies until the license comes into force.
As a result, Singapore investors also prefer to use domestic exchanges, most of whom report a continuous surge in recruitment and user base.