Kraken Obtains License to Operate in Abu Dhabi: Report

The veteran US exchange is the latest to receive a license to function as a virtual asset trading platform in Abu Dhabi. Thus, Kraken follows a similar example set by other industry giants such as Binance and FTX.

• In an attempt to enhance the nation’s cryptocurrency engagement, the UAE has been among the leaders in terms of clear regulations since 2018, which has opened the door for many industry participants to join in.
• According to a Bloomberg report, the latest to get licensed within the nation’s borders is the US digital asset exchange – Kraken. The company received a license to operate as a virtual asset trading platform in Abu Dhabi.
• Moreover, it established regional headquarters in the city, with expectations asserting that it will start functioning in the next few months.
• The license will allow Kraken’s multi-million user base to invest, trade, withdraw, and deposit crypto assets directly in dirhams.
• Binance made a similar move a few weeks ago when it received in-principle approval from the Abu Dhabi watchdog that enabled the firm to operate as a broker-dealer for digital assets.
• This came after the world’s largest crypto exchange had already obtained a limited crypto asset license in Dubai.
• FTX also set its sights on the oil-rich country by announcing plans to set up a regional HQ in Dubai recently.
• Another report from last week informed that the stringent tax legislation imposed in India on crypto dealings pushed some local exchanges to seek a new home in Dubai as well.