Standard Chartered-backed Zodia Markets has received in-principle approval from the Abu Dhabi Global Market [ADGM] to operate as an OTC crypto broker-dealer in the region. According to the official guidelines, the in-principle level marks the third step in the five-stage application process. Thus, the company will next have to get final approval and then go through an operational launch test.
Loading…
Also Read: 70% Vs. 500%: Warren Buffet’s Berkshire Underperforms Bitcoin
Salem Mohammed Al Darei, CEO of ADGM Authority, asserted that the latest development will help bolster the attractiveness of the region as a preferred destination for global entities. In fact, the crypto-friendly nature of Abu Dhabi has been a boon for firms like Zodia that have been looking to fortify their presence in the Middle East. Zodia’s Chief Executive, Usman Ahmad, told The Financial News,
“Since Standard Chartered was one of the early movers to the Middle East, it was natural for us to consider that region for expansion. Considering the maturity and established nature of Abu Dhabi’s regulatory framework, it made a lot of sense for us to focus on the region early.”
Also Read: HashKey’s $100 Million Crypto Fund to Focus on Non-Bitcoin Assets
Ahamad pointed out that Zodia had been on the ground already. He revealed that the CTO and several other members of the technology team are based in the United Arab Emirates. Furthermore, the firm is looking to expand its team by hiring additional members. The executive acknowledged that there is a “great talent pool” in the UAE, and the firm is looking to find the right people to strengthen its position.
In Q2 2023, the crypto custody arm, Zodia Custody, raised $36 million through a funding round led by SBI Holdings. The firm intended to use the funding to add more digital assets under its purview, including staked Ether.
Leaving aside Zodia Markets, crypto exchange Rain was recently granted permission by Abu Dhabi’s Financial Services Regulatory Authority to operate a virtual asset brokerage. In fact, the firm was also green-flagged to offer custody services to its clients. Rain received its Financial Services Permission [FSP] on July 25, 2023.
Also Read: UAE: Crypto Exchange Rain Receives Brokerage, Custody Approval
