FTX Europe & MENA (FTX Europe) has announced that it has been granted permission to develop and operate its virtual asset exchange and clearing house services in Dubai, United Arab Emirates (UAE). The headquarters of cryptocurrency exchange FTX Europe are in Switzerland, allowing it to service customers across Europe and the Middle East. FTX Europe is the company’s new division.
Dubai’s “prudential supervision regime” made it possible for FTX to become the first company in the world to offer regulated trading and clearing services for crypto derivatives.
According to the recently formed Virtual Asset Regulatory Authority (VARA), Dubai is the only country in the world that regulates its own crypto ecosystem.
Following the announcement, Sheikh Mohammed bin Rashid Al Maktoum tweeted that VARA would “oversee the establishment of the greatest business environment in the world for virtual assets in terms of legislation, licensing, governance, and alignment with local and global financial systems.”
According to Helal Saeed Almarri, Director General of the DWTCA, which houses VARA, allowing FTX under this specialised regime indicates the authority’s “emphasis on permitting only the most reputable global players who demonstrate a persistent commitment to future-proofing the sector.”
With VARA, Dubai is developing a cutting-edge legal framework to protect investors and establish international rules governing the crypto industry. While FTX Europe was the first permitted VAX to provide complicated crypto derivatives to professional institutional investors in the country, Binance is also apparently in talks for a licence to operate in the Gulf city-state.