After Binance, it is the turn of the exchange Kraken to offer its trading services in Abu Dhabi. The Middle East continues to seduce crypto exchanges.
Kraken: mission UAE
The United Arab Emirates (UAE) is very attractive for Blockchain companies because of its legal framework. This has resulted in some of the fastest growth with 7% of transaction volumes according to Chainalysis.
Kraken aims to be a forerunner by being the first exchange to offer trading pairs in AED, the local currency. Curtis Ting, Kraken’s Senior Director for Europe, Middle East and Africa, said that the exchange had obtained the necessary licenses.
The exchange has also indicated that it intends to locate its regional headquarters there after receiving approval from the Abu Dhabi Global Market.
Curtis Ting points out that being able to operate directly with the Abu Dhabi market and offer AED trading pairs is a step towards adoption. Pairs available at launch will be ETH/AED, BTC/AED, MATIC/AED and others.
It is important to facilitate access to global markets and ensure that investors and traders have access to their local currency.Curtis Ting, Senior Director Kraken
It would indeed be a shame for Kraken to deprive itself of the United Arab Emirates market, which represents approximately $25 billion. According to Chainalysis, this market is the 3rd largest in the region, behind Lebanon ($26 billion) and Turkey ($132.4 billion).
A fierce competition between exchanges
It is useless to point out that Binance, the number one platform in volume traded is also interested in the United Arab Emirates and Abu Dhabi. The acceptance of cryptoassets is booming in the region, so the market remains very attractive, as evidenced by the desire of Binance to recruit a hundred employees.
Bybit, meanwhile, has opted for a headquarters in Dubai.
The FTX platform is not to be outdone with the obtaining of its license and the relocation of its regional headquarters to Dubai.
Global regulation on the lookout
While the UAE is doing everything to attract investors, crypto brokers and blockchain companies, some regulators blame the country for its laxity on money laundering.
In a world where international blockades exist (say hello to Russia and North Korea), money laundering remains a major concern.
The UAE is becoming a crypto Eldorado allowing the development of AED while the euro and dollar are suffering from inflation. An inflation leading to a loss of confidence in fiat currencies in favor of crypto currencies. It remains to be seen whether the UAE will be able to regulate the market and escape the wrath of global regulators.
Co-founder of Coinpri, Expert in blockchain and NFT, I vulgarize the new web3 and blockchain paradigm here.