US-based cryptocurrency exchange Kraken received a full license to operate a regulated trading platform in Abu Dhabi, and has set up its regional headquarters in the city.
Kraken will become the first cryptocurrency exchange to provide direct funding and trading in UAE dirhams against bitcoin, ether and a range of other cryptocurrencies, after gaining regulatory approval from the Abu Dhabi Global Market (ADGM) and Financial Services Regulatory Authority for its local launch. The firm that is considered one of the world's biggest cryptocurrency exchanges is supposed to commence operations during the Q2 or Q3 of this year, according to Dhaher bin Dhaher, CEO of ADGM’s Registration Authority.
Launched in 2011, Kraken today operates in over 60 countries and has more than 8 million users globally.
The Middle East is one of the fastest-growing cryptocurrency markets in the world, making up 7% of global trading volumes. And according to Chainalysis data studied between July 2020 and June 2021, the UAE ranks third by volume in the region by transacting around $25 billion worth of cryptocurrency on yearly basis, while Turkey ranks first ($132.4 billion) and Lebanon second (about $26 billion).
With Kraken launching its regional headquarters in Abu Dhabi, the competition is going to get more intense among the crypto exchange giants who have been trying to penetrate the MENA region.
Earlier this year, Binance, the world’s largest crypto exchange by trading volume, got a license to operate in Dubai, and a month later received approval to operate in Abu Dhabi as a broker-dealer in virtual assets.
Other competitors that were granted approval to launch headquarters in Dubai as well are Bybit and FTX.
