Binance and FTX, the largest centralized exchanges of the cryptocurrency markets, have recently adopted an expansion policy towards the Middle East. Recent developments indicate that the FTX exchange has been licensed to operate in Dubai and Binance in Bahrain.
FTX Europe & MENA, the European arm of the FTX exchange, announced yesterday that it has received a license to establish and operate a Virtual Asset Exchange and Clearing House service in Dubai, United Arab Emirates. Making a statement on the subject, FTX CEO Sam Bankman-Fried said:
“We want to play a leading role in advancing the crypto-asset industry in countries that have a robust regulatory framework and also have the highest standards of security, risk and investor protection.”
Patrick Gruhn, President of FTX Europe, also said the European subsidiary plans to establish a regional headquarters in Dubai.
In recent years, the Dubai Multi Commodity Center (DMCC) has been on the agenda to establish a crypto valley with the mission of promoting and adopting the crypto asset and blockchain industry within the borders of the United Arab Emirates. It is believed that the business license obtained by the FTX exchange will be an important contribution to the region that aims to adopt crypto assets.
FTX isn't the only crypto company expanding into the Middle East. Binance, the largest exchange in the industry, recently obtained a similar license in Bahrain.
Late last year, Binance announced that it had agreed in principle with the Central Bank of Bahrain (CBB) to establish it as a crypto asset service provider in the country. Yesterday, it was announced that a crypto asset service provider license has been obtained from the Central Bank of Bahrain.
Making a statement about the license obtained in Bahrain, Binance CEO Changpeng Zhao considered it a turning point in their journey to globally licensed operations and complying with regulators.
Binance grappled with regulatory issues in many countries in 2021. The officials of Binance, which has been exposed to consumer warnings in the European region, especially in the UK, stated that they intend to work in compliance with the regulators at every opportunity and expressed that they will make maximum efforts to obtain a license.