While the Binance exchange sought to make the most of the Dubai market, it unfortunately has some competition.
FTX, led by Sam Bankman-Fried, has obtained the Virtual Asset Exchange (VAX) license in Dubai, which will allow it to offer crypto derivative services in the region.
The exchange grabbed the license after complying with new cryptocurrency laws passed in Dubai last week. The new law had already seen the creation of the Dubai Virtual Asset Regulatory Authority (VARA).
In a tweet on Tuesday, Bankman-Fried said FTX was more than happy to secure the first license under Dubai’s prudential supervision regime.
Focus on Dubai
The Middle East or West Asia region has been a hub of crypto activities in the recent past. Market leader Binance had set up its hub in the Dubai World Trade Center Authority in 2021 and planned to set up its global office there at some point before moving to Bahrain.
Dubai has adopted pro-crypto policies; the law is a big step towards crypto adoption. With FTX joining the party, the Dubai market is expected to grow, which will encourage other exchanges in the region to join the party more aggressively.
FTX has upped the ante in the crypto space with Super Bowls ads and new deals with big brands. FTX Europe Director Patrick Gruhn said the Dubai debut will bring credibility and certainty to FTX and help them grow their operations in the region.
Dubai has become an important hub for the crypto market. UAE Prime Minister Sheikh Mohammed bin Rashid has high hopes for the nation. In the coming months, we may see the government expand its crypto ambitions to other countries as well.
While this step is a positive step towards crypto adoption and market participants, it should be kept in mind that cryptos are volatile assets and investors should do their market research before venturing into any such risky assets.
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