Is Abu Dhabi Becoming a Safe Haven for Crypto Companies

Is Abu Dhabi Becoming a Safe Haven for Crypto Companies?

The UAE is trying to diversify itself from oil as the city’s wealthy rulers want to entice new businesses including those in the cryptocurrency industry. It’s a matter of attraction is that the Abu Dhabi Global Market has become an attractive jurisdiction for crypto companies large and small since it introduced digital asset regulation in June 2018. Reportedly, the Financial Services Regulatory Authority (FSRA) has received a high interest from industry players for operating licensed crypto business. Some cryptocurrency companies and ancillary services paid interest to shift them to Abu Dhabi, which became attractive to the crypto industry players as it is providing a strong place for the space.

Kraken, which is the most trusted cryptocurrency exchange on the market, has already started the licensing process and is working with the FSRA to make its offering complaint with local laws. The Huobi Exchange, a digital asset trading platform the offers safe and reliable trading options and investment for over 100 digital asset pairs, is also walking towards the way of kraken. Ciara Sun, Huobi’s head of global business, thinks the new place will be a blessing opportunity to their space. Ripple is also likely to shift very soon.

The ADGM’s crypto framework was made considering all privacy issues that will favor all exchanges, brokerages or custodians. But reportedly, no business has been given a full license yet indeed. But the regulatory regime in Abu Dhabi is pretty much lifted from the U.K is another reason for shifting there. It is also expected that Abu Dhabi’s regulation might be a precursor for future crypto regimes in other countries. Anyone who is acquainted with U.K. regulation would find their way around Abu Dhabi Regulation pretty simple as the language and regulation are almost exactly the same.

There are other jurisdictions offerings some sort of cryptocurrency licensing framework: Malta and Liechtenstein have their own cryptocurrency regimes, with Singapore having gradually incorporated digital assets into its existing payment regulation. But appeal of many companies is that only 5 percent applicant companies are getting ADGM license so getting regulation there is really difficult. Global players like Kraken or Huobi are getting license easily but the rigidity is common for small players like DiversiFi and HAYVN. HAYVN could all be sitting in the Seychelles and providing these services. But having a regulator gives customer a little bit more comfort.

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