FTC Gets Full Operational License In Dubai

One of the top crypto derivatives exchanges in the market, FTX recently managed to obtain a full operational license for running its exchange and clearing house in Dubai.

On Friday, the exchange received approval from the Virtual Assets Regulatory Authority (VARA) in Dubai.

New license

Thanks to this license, FTX can now provide crypto trading services and derivatives offerings to institutional investors in Dubai.

However, it should be noted that these offerings would have to be in accordance with the existing regulations about such offerings in the emirate.

In addition, an NFT (non-fungible token) marketplace will also be operated by the exchange, and custodial services will also be offered.

The FTX exchange also disclosed that one of the subsidiaries of the exchange’s Middle East and Europe division, called FZE would be the one providing its offerings in the emirate.

Retail market

Balsam Danhach, the chief executive of the North African and Middle East division of the FTX exchange, disclosed that retail customers are also included in the new approval.

Danhach added that the exchange is planning on scaling up gradually in order to comply with the guidelines that have been outlined by VARA when it makes its way towards the retail market.

Initially, in March, the crypto derivatives exchange had only managed to get a partial license in Dubai. This was only a couple of weeks after virtual asset providers had been permitted to establish their hubs in the country by the Securities and Commodity Authorities (SCA) in Dubai.

This made FTX the first virtual exchange to have gotten Dubai authorities to grant a partial license. It had then promised to establish its regional hub.

Expansion crusade

Even though the crypto market conditions are definitely not good, this has not stopped FTX from embarking on its expansion crusade.

As a matter of fact, it has continued making investments in various crypto startups that have been hit by the extreme conditions associated with the bear market.

Back in June, the derivatives exchange of Sam Bankman-Fried had given a bailout of a whopping $250 million to BlockFi, the popular Bitcoin lender, which is struggling due to market conditions.

After making the bailout offer, reports indicated that the exchange had also made an agreement to get a stake in the crypto lending platform.

Zac Prince, the chief executive of BlockFi, said that the bailout they had gotten from the FTX exchange involved both defensive and offensive techniques.

After news of another crypto lender, Celsius Network going bankrupt had hit, BlockFi had seen a rise in the number of withdrawal requests on its platform.

Furthermore, FTX’s quantitative company, Alameda Research had also offered a crypto broker called Voyager Digital support of about $500 million, as it had also filed for bankruptcy.

In addition, the FTX exchange is also involved in the funding round of Aptos, a Web3 protocol. Reports indicate that the project was able to raise about $150 million and other participants included Circle Ventures, Apollo, Griffin Gaming Partners, and Jump Crypto.