eToro and M2 Gain Approval from Abu Dhabi Authority to Expand Crypto Services in UAE
Summary:
The Abu Dhabi Financial Markets Authority has granted approval to cryptocurrency platforms eToro and M2 to extend their services in the United Arab Emirates. eToro has gained permission to operate as a broker for securities, derivatives and crypto assets, while M2 has been acknowledged as a fully regulated Multilateral Trading Facility and custodian. The decision occurs as the UAE continues to strengthen its position as a global hub for cryptocurrency businesses by providing comprehensive regulations for blockchain and Web3 organizations.
Abu Dhabi's Financial Market Authority (ADGM) has greenlighted cryptocurrency investment platforms, eToro and M2, to broaden their services within the United Arab Emirates. eToro earned a Financial Services Permission (FSP) accreditation, enabling it to act as a securities, derivatives, and cryptocurrency broker. In contrast, M2 secured status as a fully regulated Multilateral Trading Facility (MTF) and custodian able to engage UAE-based individuals and institutional customers. The decision boosts eToro's global growth strategy, a sentiment shared by Yoni Assia, its CEO. Prior to this, the platform secured a registration as a Crypto Asset Service Provider (CASP) from the Cyprus Securities and Exchange Commission, a necessary step for globally expanding crypto companies, as previously noted by deputy CEO, Hedva Ber. On the other hand, M2 will offer UAE customers cryptocurrency custody, Bitcoin and Ether trading based on UAE dirham, and dirham on/off ramp services. M2's CEO, Stefan Kimmel, expressed that this licensing comes at an opportune time in view of the reemergence of positive investor attitude.
In November, ADGM introduced regulations governing Web3 companies to provide regulatory clarity as the UAE cements its position as a haven for international cryptocurrency enterprises. These guidelines are directed at blockchain foundations, Web3 entities, decentralized autonomous organizations, and traditional foundations venturing into Distributed Ledger Technology (DLT). Thus, allowing the establishment of a "DLT Foundation" if they submit a signed charter outlining the foundation's first assets, governance details and, if applicable, token issuance. They must also supply the organization's white paper, tokenomics paper, and a link to a DLT Framework technical document.
Published At
11/28/2023 9:03:09 AM
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