QCP Capital, a leading cryptocurrency options trading platform, has been granted initial regulatory approval to operate in Abu Dhabi, marking another significant expansion of a crypto firm in the region.
According to a statement from the Financial Services Regulatory Authority of Abu Dhabi Global Markets (ADGM), the digital asset options trading desk has received in-principle approval for regulated digital asset activities. This makes QCP Capital the first Singapore-based crypto market maker and broker to receive preliminary approval in the region, as confirmed by an ADGM spokesperson.
QCP Capital, which is one of the largest crypto options trading desks, achieved a staggering $60 billion in crypto derivatives trading volume in 2023. The firm plans to relocate some of its nearly 70 employees to Abu Dhabi once it receives full regulatory approval.
Melvin Deng, CEO of QCP, expressed his thoughts on the matter, stating that the in-principle approval is in line with the UAE’s efforts to establish itself as a leading global cryptocurrency hub.
In a similar vein, Binance, the world’s largest crypto exchange, obtained a long-awaited Virtual Asset Service Provider (VASP) license in Dubai in April. This came after Binance co-founder Changpeng Zhao relinquished his voting power in the exchange’s local entity. Binance had previously acquired a preparatory minimal viable product license from VARA in September 2022, allowing the exchange to offer various digital asset services to qualified retail and institutional investors.
While Binance received its full license more than a year and a half after the preliminary approval, QCP Capital may receive its regulatory license sooner, as the trading desk is not facing the same level of regulatory scrutiny as Binance.
In February, ADGM signed a memorandum of understanding with the Solana Foundation to advance the development of distributed ledger technology (DLT), further solidifying UAE’s commitment to the crypto industry.
Overall, these developments demonstrate the UAE’s determination to position itself as a major player in the global cryptocurrency market.