QCP Capital, a leading cryptocurrency options trading platform, has obtained initial regulatory approval to operate in Abu Dhabi, marking its expansion into the region. The Financial Services Regulatory Authority of Abu Dhabi Global Markets (ADGM) granted QCP Capital in-principle approval for regulated digital asset activities, as reported in a statement on May 7, according to Bloomberg.
This milestone positions QCP Capital as the first crypto market maker and broker based in Singapore to receive preliminary approval in Abu Dhabi, confirmed by an ADGM spokesperson.
QCP Capital, renowned for its large-scale crypto derivatives trading, achieved $60 billion in trading volume in 2023. With nearly 70 employees, some will be relocated to Abu Dhabi upon receiving full regulatory approval.
Melvin Deng, QCP's CEO, expressed to Bloomberg, "Abu Dhabi has very progressive regulators who view digital assets as part of a comprehensive ecosystem alongside traditional finance."
As the next Major Global Center for Cryptocurrencies, the UAE
The in-principle approval aligns with the United Arab Emirates' (UAE) aspirations to establish itself as a prominent global cryptocurrency center.
In April, Binance, the world's largest cryptocurrency exchange, secured a long-awaited Virtual Asset Service Provider (VASP) license in Dubai. This followed co-founder Changpeng Zhao's relinquishment of his voting power in the exchange's local entity.
Binance initially obtained a preparatory minimal viable product license from VARA in September 2022, allowing the exchange to provide various digital asset services to qualified retail and institutional investors. However, it took over a year and a half to receive the full license after the preliminary approval.
Contrarily, QCP Capital might obtain its full regulatory license sooner, given that the trading desk isn't encountering the same level of regulatory scrutiny as Binance.
In February, ADGM inked a memorandum of understanding with the Solana Foundation to promote the advancement of distributed ledger technology (DLT).
May 2024, Cryptoniteuae