Kraken, one of the world’s largest cryptocurrency exchanges and home to more than nine million users in 60 countries, has been granted a full financial licence to operate in the UAE by Abu Dhabi Global Market (ADGM), the largest regulated jurisdiction of virtual asset activities in the Middle East and North Africa (MENA) region.

The UAE, which aims to become a regional hub for cryptocurrency exchanges, is working to build a decentralized economy in the capital. Earlier this month, the FSRA issued a discussion paper on decentralized finance (defi). In March, the regulator published a consultation paper proposing significant amendments to its capital markets framework, including in crypto assets.

“Kraken is the first global cryptocurrency exchange to receive a Financial Services Permission (FSP) license to operate a regulated virtual asset exchange platform in the ADGM to service the needs of the Middle East and North Africa region.” The regulator explained.

Established its Middle East headquarters in ADGM, the exchange will be “the first global virtual assets exchange group in the UAE to offer investors the ability to invest, trade, withdraw and deposit virtual assets (bitcoin and ether) directly in local AED currency.” 

The FSRA also awarded cryptocurrency exchange Binance in-principle approval this month “to operate as a broker-dealer in virtual assets.”