Crypto platforms win EMEA regulatory approval

After years of operating a lucrative business model from offshore tax havens with little or no regulatory oversight, 2022 has been the year crypto trading platforms have joined the financial mainstream as countries around the world move to regulate the space.

For the biggest players, this means applying for multiple licenses in different jurisdictions to be able to operate above board and maintain their credibility.

In recent days, the likes of Binance, Coinbase and Coincorner have received important official approval to do business in Europe, the Middle East and Africa (EMEA).

Exchange Prepare for EU legislation

Ahead of the EU’s upcoming Markets in Crypto Assets (MiCA) legislation, recent months have seen crypto trading platforms scrambling to secure the necessary licenses to continue operating legally.

Most recently, US-based cryptocurrency exchange Coinbase announced that it has 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.

Coinbase currently serves customers across nearly 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 ongoing in several major markets, in accordance with local regulations.”

Other crypto firms that have registered with DNB include cryptocurrency exchange Bitstamp and Ethereum venture DeFi platform BLOX.

Aside from the Netherlands, Cyprus has proven to be a popular choice for companies looking to post 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: In front of MiCA, Cyprus emerges as the preferred crypto license base in the EU

Another platform in line for approval by EU regulators is the trading app Freetrade. In a crowdfunding pitch that Financial News reported on this week, the firm stated that it intends to branch into crypto as part of a push into the European mainland market and has already applied for authorization from regulators.

Dubai continues to attract crypto businesses

Six months after passing its own crypto regulation, which created the Virtual Asset Regulatory Authority (VARA), Dubai’s position as a regional crypto hub continues to gain 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 VARA, following the issuance of the provisional license in March 2022.

The MVP license means that Binance can offer an approved range of virtual asset-related services to private and institutional investors in Dubai.

The transition to an MVP license from a provisional license received earlier this year means that Binance can open a client money account with a domestic bank and offer services including services for the exchange of virtual assets, conversion between virtual assets and fiat currencies, transfer of virtual assets, custody and management of virtual assets, virtual token offerings and trading services, and virtual asset payments and remittance services.

Over the past year, Binance has deepened its ties with the Emirate of Dubai. As Reuters reported in March, the firm worked with lawmakers to help shape 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 might even open a headquarters there.

Earlier this month, 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 established itself in Dubai in recent days is Scottish firm Cigrek Capital, which launched its solution for managers of digital asset strategies simultaneously in Dubai and the EU this month.

The company’s founder and CEO Laura Barscevska explained the rationale behind the launch in Dubai, “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 investment platform in Dubai has been established to meet the real appetite for a locally regulated platform that will allow investors to allocate to some of the best cryptocurrency management talent out there. We are already in discussions with some cutting-edge fund managers in this space that we will bring to The Gulf market eventually.”

In other Dubai crypto news, CoinCorner, a UK-based company that facilitates bitcoin-based commerce 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 belonging to the private office of Dubai’s Sheikh Saeed bin Ahmed Al Maktoum.

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