The UAE is emerging as a global cryptocurrency hub, said a senior official from Kraken, one of the largest digital asset exchanges in the world.
In April of this year, Kraken became the first global cryptocurrency exchange to receive a full license to operate a regulated virtual asset exchange platform on the Abu Dhabi Global Market (ADGM). Earlier this week, Kraken and RAKBank announced that UAE residents will soon be able to trade virtual assets in dirhams using their local bank accounts.
Benjamin Ampen, CEO of Kraken Mena, pointed out that cryptocurrency adoption in the UAE is growing rapidly.
“With Kraken, investors in the UAE and the wider Mena region will be able, for the first time, to participate and invest in the cryptocurrency market in a safer, safer, more efficient and lower cost way via a fiat dirham gateway. . “
The UAE is the third largest country in the world in terms of cryptocurrency adoption with 35% already owning some form of cryptocurrency, according to a Gemini survey.
“By being able to invest directly in cryptocurrencies and fund and withdraw from their Kraken account directly in dirhams, regional investors and institutions can benefit from a frictionless trading experience and much wider access to the cryptocurrency market.”
According to Chainalysis “The 2021 Geography of Cryptocurrency Report”, the Middle East received $ 271.7 billion in cryptocurrency between July 2020 and June 2021, or 6.6% of global activity. The UAE, with transactions worth $ 25.5 billion, is third behind Turkey and Lebanon.
Ampen noted that dirham-denominated trade would increase trading volumes in the UAE.
“The Middle East is one of the fastest growing cryptocurrency markets in the world. Clients in the UAE are already using Kraken to trade over $ 1 billion in trading volume, and that’s without direct acceleration. Dirham trading pairs will allow Kraken to tap directly into the UAE’s liquid capital markets, creating strong potential to see a significant increase in trading volume. “
Ampen said ADGM, a strong financial services center, is an ideal and indispensable partner.
“Kraken was delighted to partner with ADGM, who were instrumental in realizing our vision of bringing cryptocurrency trading to life in the UAE. The regulatory dynamic in the region has been very progressive, visionary and forward-looking, characterized by the virtual assets of ADGM. Framework, which continues to drive adoption and innovation in emerging technology-based investment strategies We have been privileged to receive such support and approval from them.
Ampen pointed out that progressive regulatory reform, legislative action and technological innovation put the UAE in a strong position to lead the cryptocurrency market.
“The UAE’s crypto strategy is ambitious and compelling, but it moves at high speed. By bringing a novelty to the region by allowing investors to access cryptocurrency trading directly in dirhams, we want to help increase activity, adoption, investment flows and awareness of the UAE’s status as a rapidly growing global crypto market. expansion. “
Ampen added that Kraken wants to be a trusted partner of the UAE.
“This is an exciting opportunity for us to accelerate the adoption of cryptocurrency in a high potential region. We firmly believe that our proposal aligns with national interests and can help support the region’s vision.”
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