Kraken becomes the second cryptocurrency exchange after Binance to receive regulatory approval to allow it to operate in the United Arab Emirates. Kraken is now allowed to operate in the Abu Dhabi Global Market (ADGM), Abu Dhabi International Financial Centre and Free Zones.
After obtaining a crypto trading license, Kraken will now offer local investors to the global crypto market via dirham (AED) trading pairs, marking a diversification of trading pairs to use local currencies instead of the traditional GBP and USD .
Integrate with local banks in UAE
With the new cryptocurrency trading license, Kraken intends to integrate with local payment service providers in Abu Dhabi; Kraken’s managing director Curtis Ting believes this will help Kraken bring a global level of liquidity to the UAE.
Dubai is known to have a large cryptocurrency following with an annual transaction volume of over $25 billion.
“It is important to us to facilitate access to global markets and global liquidity by ensuring that investors and traders in the region have access to local currencies [trading pair]. “
Crypto Exchange Interest in the Middle East
While Kraken has only obtained its first crypto trading license in the Middle East, its rival Binance has already secured crypto trading licenses to operate in Dubai and Bahrain.
With the influx of regulated cryptocurrency exchanges into the Middle East, local businesses are also beginning to venture into the world of cryptocurrencies. Civic schools in Dubai, for example, started accepting Bitcoin (BTC) and Ethereum (ETH) as tuition payments, with cryptocurrency payments automatically converted to dirhams.