Crypto Investment Platforms eToro and M2 Receive Approval to Operate in the UAE
eToro and M2, two crypto investment platforms, have received approval from the ADGM Financial Services Regulatory Authority to offer their services in the United Arab Emirates (UAE). eToro has obtained a Financial Services Permission (FSP) that allows it to operate as a broker for securities, derivatives, and crypto assets. Meanwhile, M2 has been recognized as a fully regulated Multilateral Trading Facility (MTF) and custodian that can onboard UAE residents and institutional clients.
According to eToro CEO Yoni Assia, this licensing is a significant milestone in the company’s global expansion. In September, eToro also received registration as a Crypto Asset Service Provider from the Cyprus Securities and Exchange Commission.
M2’s services in the UAE will include crypto custody, UAE dirham-based Bitcoin and Ether trading, and on/off-ramp services for the dirham. M2 CEO Stefan Kimmel believes that the timing of the license issuance is ideal due to positive investor sentiment.
ADGM Introduces Regulations for Web3 Organizations
In November, the ADGM registration authority introduced comprehensive regulations governing Web3 organizations. The Distributed Ledger Technology (DLT) Foundations Regulations 2023 aim to provide regulatory clarity to blockchain foundations, Web3 entities, decentralized autonomous organizations (DAOs), and traditional foundations expanding into DLT.
These regulations allow for the creation of a “DLT Foundation” by submitting a signed charter that includes details about its governance, token issuance (if any), white paper, tokenomics paper, and a link to a technical document called a DLT Framework.
Hot Take: Crypto Investment Platforms Expand Into the UAE
Crypto investment platforms eToro and M2 have obtained approval from the ADGM Financial Services Regulatory Authority to operate in the UAE. This regulatory approval allows eToro to act as a broker for securities, derivatives, and crypto assets, while M2 has been recognized as a fully regulated Multilateral Trading Facility (MTF) and custodian. The CEO of eToro sees this as a significant milestone in their global expansion efforts. Additionally, the ADGM has introduced regulations governing Web3 organizations, aiming to provide clarity and regulation for blockchain foundations, Web3 entities, DAOs, and traditional foundations expanding into DLT.
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