California-based crypto exchange Kraken is the second virtual asset platform after Binance to receive regulatory approval to operate in the Abu Dhabi International Financial Center and Free Zone, Abu Dhabi Global Market (ADGM).
In a CNBC interview, Kraken’s CEO Curtis Ting explains the importance of diversifying trading pairs into local currencies rather than using the US dollar or British pound traditionally available in global markets.
With the new operating license in Abu Dhabi, Kraken is aiming for better integration with local banks and payment service providers. According to Ting, this will help the crypto exchange bring liquidity to the UAE region on a global scale.
Citing Dubai’s existing massive trading volumes, such as over $25 billion worth of cryptocurrencies per year, Ting added that “the region is ready and they’ve been waiting for a regulated offering like ours.” While operating as a fully licensed crypto exchange, Kraken will offer United Arab Emirates dirham (AED) pairs to local investors:
“It is really important for us to facilitate access to global markets and global liquidity by ensuring that investors and traders in the region have access to local currencies [trading pair].”
In addition to Abu Dhabi, rival crypto exchange Binance has already received regulatory approvals from two other regions in the Middle East – Bahrain and Dubai.
Related: School in Dubai will welcome tuition fees in Bitcoin and Ethereum
Alongside the influx of regulated businesses in the Middle East, local businesses have also started to enter the cryptocurrency world.
The Citizens School in Dubai started accepting tuition between AED 45,000 and AED 65,000 in Bitcoin (BTC) and Ether (ETH). As Cointelegraph reported, crypto payments are automatically converted to dirhams. Adil Alzarooni, the school’s founder, commented:
“We look forward to strengthening the role of young generations in realizing the UAE’s digital economy. The more people turn to the age of digitization, the more today’s children will become the entrepreneurs and investors of tomorrow.”
The school is currently available to students aged 3 to 11 and is scheduled to open in September 2022.
https://cointelegraph.com/news/kraken-awarded-crypto-trading-license-in-the-united-arab-emirates Kraken Receives UAE Crypto Trading License