QCP Capital Secures Preliminary Approval for Crypto Trading in Abu Dhabi
Summary:
QCP Capital, a global cryptocurrency options trading platform, has received initial regulatory approval from the Financial Services Regulatory Authority of Abu Dhabi Global Markets (ADGM) to operate in Abu Dhabi, marking it as the first Singapore-based crypto market maker to obtain preliminary approval in the region. This move aligns with UAE's ambitions to emerge as a key global cryptocurrency hub. In contrast to Binance, which obtained full licensing after about 18 months of initial approval, QCP Capital may secure complete regulatory permission sooner, having attracted less regulatory attention.
QCP Capital, a globally recognised cryptocurrency options trading platform, has secured preliminary regulatory consent to launch operations in Abu Dhabi, marking the latest extension of a notable digital finance firm into the region. This initial endorsement for regulated digital asset activities for QCP Capital came from Abu Dhabi Global Markets' (ADGM) Financial Services Regulatory Authority, as disclosed in a statement dated May 7 and shared with Bloomberg. This development sees QCP Capital, a Singapore-based crypto market maker and broker, as the first of its kind to get a preliminary green light in the region, according to a representative from ADGM.
QCP Capital, among the most sizable crypto options trading desks, amassed trading volumes of $60 billion in crypto derivatives in 2023. The company, which maintains a workforce of close to 70, is expected to move some employees to Abu Dhabi once it secures full requisite regulatory permits.
In a chat with Bloomberg, QCP's CEO Melvin Deng noted that Abu Dhabi boasts of progressive regulators who consider digital assets as a comprehensive ecosystem, fully integrated with traditional finance.
This provisional regulatory approval aligns with the United Arab Emirates' (UAE) aim to rise as a leading global hub for cryptocurrency. In April, Binance, the world's largest digital exchange by volume, was granted a desired Virtual Asset Service Provider (VASP) license in Dubai. This followed the surrender of voting rights in the local entity by Changpeng Zhao, the co-founder.
Binance also secured a preliminary minimal viable product license from VARA in September 2022, which permitted the exchange to deliver various digital asset services for eligible retail and institutional investors. Binance received complete licensing nearly 18 months following initial permission. QCP Capital may see full regulatory licensing sooner, given it's not under the same level of regulatory scrutiny as Binance.
In related news, in February, ADGM entered a memorandum of understanding with the Solana Foundation to further the development of distributed ledger technology (DLT).
Published At
5/7/2024 3:24:45 PM
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