- The FTX exchange has been granted permission to operate exchange and clearing house services in Dubai.
- The company will build a regional headquarters in the city.
- A subsidiary of FTX operating in Europe and the Middle East will facilitate product offerings in the region.
FTX, a Bahamas-based cryptocurrency exchange, has received permission to operate as an exchange and clearing house in Dubai, according to a report Reuters.
The exchange will begin offering services exclusively to institutional investors in Dubai by operating a digital asset market, custody services and facilitating trading services for bitcoin and other cryptocurrencies. It will also offer access to derivative products.
“Our license also extends to retail clients, however, this will be a gradual scaling up to ensure that we approach the retail market within the guidelines set by the Virtual Assets Regulatory Authority (the regulatory body). regulation of the Dubai industry),” said Balsam Danhach, head of FTX Middle East and North Africa, according to the report.
The cryptocurrency services offered in Dubai will be managed by FTX Exchange FZE, a subsidiary of FTX operating in the European and Middle Eastern markets.
In March, FTX received a provisional approval as the company finally agreed to set up a regional headquarters in Dubai. Earlier this week, institutional cryptocurrency custodian Komainu, a subsidiary of Japanese banking giant Nomura, got the same provisional acceptance. The company will also build a headquarters in Dubai as the region continues to work to become a hub for digital assets.
In addition to its expansion into Dubai, FTX has been making headlines in recent months in the market contagion who has wiped out many financial services companies with the cryptocurrency space. Among the acquisitions offered to FTX, both Traveling Digital and BlockFi were initially under study, after the exchange transmitted the acquisition of Celsius.