FTX Europe is the first cryptocurrency exchange in Dubai to have a license

In addition, FTX Europe will create a regional headquarters in Dubai.

The European affiliate of FTX Trading Ltd. (‘FTX’), the owner and operator of FTX.COM, announced today that its Virtual Asset (VA) Exchange and Clearing House services had been licensed in Dubai, United Arab Emirates (UAE). FTX Europe becomes the first fully regulated VA Exchange to trial complex crypto derivatives geared to professional, institutional investors within a reputable international jurisdiction as part of Dubai’s program to advance progressive worldwide VA Regulatory frameworks.

Sam Bankman-Fried, the CEO of FTX, had this to say about the news: “FTX is honored to be the first licensee to operate under Dubai’s prudential supervision. It’s an honor to be one of the first candidates in such a specialized category. We’re pleased to provide sophisticated crypto-derivatives to institutional markets with centralized counterparty clearing. The approval of FTX is a step forward in our ambition to be at the forefront of global licensing and regulation. We intend to continue leading the charge in expanding the digital asset business in nations with strong legislative frameworks and the highest security, risk, and investor protection requirements.”

Under its newly announced Virtual Asset Regulatory Authority (VARA), Dubai is the only global economy to have an independently regulated environment, which will be governed by comprehensive legislation and internationally relevant policy frameworks. Within this specialist Dubai regime, the VA Exchange [VAX] License allows FTX to be the first provider of regulated trading and clearing services for crypto-specific derivatives on trusted guardrails similar to those found on legacy markets like NASDAQ Dubai, ensuring transparency and investor security. The license, awarded under prudential supervision, permits FTX to operate inside Dubai’s ‘test-adapt-scale’ VA market model, which includes strict regulatory scrutiny and required FATF compliance procedures similar to those found in Tier 1 international financial markets. FTX will collaborate with Dubai to develop global operating standards for the crypto business as a licensed player in this specialty regime, allowing for traceable and secure cross-border exchanges.

Patrick Gruhn, FTX Europe’s Head, adds, “The approval of FTX as the first exchange under this unique legal framework is a significant accomplishment. I’m delighted to extend our presence in the Middle East and North Africa, especially as nations like the UAE continue to establish new standards for crypto legislation.”

Dubai is a well-known international jurisdiction for tier-1 financial institutions, with thriving capital markets held to the same compliance standards as the world’s greatest nations. FTX can also safely pursue its broader plan of scaling towards being the first VASP to penetrate global markets in a fully regulated way because of the assurance and credibility that Dubai provides in its adherence to these pledges.

Also, read – FTX.US Now Accepts Ethereum On Its NFT Marketplace

Helal Saeed Almarri, Director-General of the Dubai World Trade Centre Authority, which houses VARA, said of the onboarding of FTX to this ecosystem, “The Virtual Assets industry is seen as an accelerator for the Future Global Economy in Dubai. Our VARA system is designed to encourage collaboration, develop innovation, and, most importantly, prioritize public safety. As a result, this has been developed as the world’s first participatory-governance model. Policymakers, industry innovators, and market shapers share responsibility for creating a smarter, more democratic, and the borderless new economy. Licensing FTX under this expert regime underlines our commitment to allowing only the most reputable global businesses who have demonstrated a persistent commitment to future-proofing this industry to participate.”

FTX Europe’s Background

FTX Europe is a cryptocurrency exchange designed by traders, for traders, with a parent company in Switzerland. FTX Europe provides access to FTX’s innovative products, including industry-leading derivatives, options and volatility products, tokenized stocks, and other services and products, to customers in the European Economic Area and the Middle East.