QCP Capital Granted Approval to Operate in Abu Dhabi
QCP Capital, a renowned digital asset options trading desk, has received initial approval to establish its presence in Abu Dhabi and expand into the Middle East. The Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) has granted in-principle approval to QCP Capital, making it the first digital asset market maker and broker dealer from Singapore to receive such recognition in the region, as reported by Bloomberg. QCP Capital plans to relocate a section of its 70-plus employees to Abu Dhabi once it secures a full license.
QCP Capital Registered $60B in Crypto Derivatives in 2023
QCP Capital achieved a significant milestone by generating nearly $60 billion in crypto derivatives trading volume last year. Melvin Deng, the CEO of QCP Capital, expressed excitement regarding the progressive regulators in Abu Dhabi and their favorable stance on digital assets that seamlessly integrate with traditional finance. In an interview with Bloomberg, Deng highlighted the strategic geographical location of Abu Dhabi as a key factor in QCP’s decision to expand into the region, considering the global nature of the cryptocurrency industry.
- Deng emphasized the Middle East’s potential as a hub for capital flows, linking Europe, Asia, and the Middle East region.
- QCP Capital established a partnership with Abu Dhabi-based Further Ventures to develop new digital asset products collaboratively.
- Once QCP obtains the full license, its primary focus in the Middle East will be on core activities such as trading and market making.
UAE’s Growing Appeal to Crypto Firms
The United Arab Emirates (UAE) has actively pursued attracting more cryptocurrency companies, successfully drawing operations from major players like Binance, OKX, Bitget, and Nomura’s Laser Digital. Moreover, Austrian crypto exchange Bitpanda recently announced its expansion into the Middle East by opening a regional office in the UAE, appointing Walid Benothman to lead its operations in the region.
- The UAE plans to utilize cryptocurrencies for trade in the future and is working on establishing a regulatory framework.
- The country is exploring the possibility of engaging in trade using currencies other than the US dollar.
- The UAE aims to become a significant hub with crypto-friendly policies and adequate protections in place.
Hot Take: The Future of Crypto in the Middle East
The Middle East is emerging as a promising region for crypto firms. With regulatory approvals and expanding operations, companies like QCP Capital and Bitpanda are setting the stage for increased crypto adoption in Abu Dhabi and the UAE. As global cryptocurrency activities continue to surge, the Middle East’s strategic location and potential as a capital hub will play a pivotal role in shaping the future of digital assets in the region.
Sources:
1. [Bloomberg: Top Crypto Options Desk QCP Gets Abu Dhabi Regulatory Nod](https://www.bloomberg.com/news/articles/2024-05-07/top-crypto-options-desk-qcp-gets-abu-dhabi-regulatory-nod)
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