After years of operating a lucrative business model from offshore tax havens with little or no regulatory oversight, 2022 has been the year that crypto trading platforms have joined the financial mainstream as countries around the world move to regulate the space.
For the biggest players, that means applying for multiple licenses in various jurisdictions in order to be able to operate above board and maintain their credibility.
In recent days, the likes of Binance, Coinbase and Coincorner have gained important official approval to do business in Europe, the Middle East and Africa (EMEA).
Exchanges Prepare for EU Legislation
Ahead of the EU’s upcoming Markets in Crypto Assets (MiCA) legislation, recent months have seen crypto trading platforms scramble to secure the necessary licenses in order to continue operating legally.
Most recently, the U.S.-based cryptocurrency exchange Coinbase announced that it has successfully registered with the Dutch Central Bank (De Nederlandsche Bank — DNB) as a crypto service provider.
This registration will allow Coinbase to offer its full suite of products and services to customers in the Netherlands. Under the EU’s upcoming MiCA legislation, crypto firms licensed in one member state will be able to offer their services across the bloc.
Currently, Coinbase serves customers across almost 40 European countries through dedicated hubs in Ireland, the UK, and Germany. In a press release announcing the new Dutch registration, the company stated, “Additional registrations and license applications are in progress in several major markets, in compliance with local regulations.”
Other crypto firms that have registered with the DNB include cryptocurrency exchange Bitstamp and the Ethereum-staking DeFi platform BLOX.
Away from the Netherlands, Cyprus has proven a popular choice for companies looking to passport their license across the EU, with a number of international firms registering with the Cyprus Securities and Exchange Commission. These include BitPanda, Crypto.com, CMC Markets and Revolut.
Read more: Ahead of MiCA, Cyprus Emerging as Preferred EU Crypto License Base
Another platform that is lining up for EU regulatory approval is trading app Freetrade. In a crowdfunding pitch that Financial News reported on this week, the firm stated that it intends to branch out into crypto as part of a push into the mainland European market and has already applied for authorization from regulators.
Dubai Continues to Attract Crypto Businesses
Six months on from passing its own crypto regulation, which created the Virtual Asset Regulatory Authority (VARA), Dubai’s position as a regional crypto hub continues to gather momentum.
Related: Dubai’s Virtual Assets Regulatory Authority Opens Sandbox-Based Metaverse HQ
Global Cryptocurrency exchange Binance announced last week that it has received a Minimal Viable Product (MVP) license from the VARA, following the issuance of its provisional license in March 2022.
The MVP license means that Binance can offer an approved range of virtual asset-related services to retail and institutional investors in Dubai.
The transition to an MVP License from a Provisional License received earlier this year means Binance can open a client money account with a domestic bank and provide services including virtual asset exchange services, conversion between virtual assets and fiat currencies, transferal of virtual assets, custody and management of virtual assets, virtual token offering and trading services, and virtual assets payments and remittance services.
In the past year, Binance deepened its ties with the Emirate of Dubai. As Reuters reported in March, the firm worked with lawmakers to help to shape the VARA, which the firm’s regional head for the Middle East and North Africa (MENA) region, has called a “very progressive framework.” There has even been speculation that it may even open a headquarters there.
Earlier this month, the luxury hotel, Palazzo Versace Dubai announced that it had partnered with Binance to allow customers to pay with cryptocurrency.
Read more: Luxury Resort Palazzo Versace Dubai Accepts Crypto via Binance
Another company that has set up shop in Dubai in recent days is the Scottish firm Cigrek Capital, which launched its solution for managers of digital assets strategies simultaneously in Dubai and the EU this month.
Explaining the rationale behind launching in Dubai, company founder and Managing Director Laura Barscevska, said, “The new platform is designed to match leading investment talent in the digital universe with wealthy investors in the Gulf who want more exposure to this asset class.”
“Our Dubai investment platform has been established to meet the real appetite for a locally-regulated platform which will allow investors to allocate to some of the best cryptocurrency management talent out there. We are already in discussions with some pioneering fund managers in this space which we will be bringing to the Gulf market in due course.”
In other Dubai crypto news, CoinCorner, a U.K.-based company that facilitates bitcoin-based trading and payments, has partnered with Seed Group to offer its bitcoin transaction services across the UAE and wider MENA region.
Seed Group is a company of the Private Office of Dubai’s Sheikh Saeed bin Ahmed Al Maktoum.
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