The UAE’s evolving digital asset industry is paving the way for several crypto firms to establish their operations in the country, with financial regulators in Abu Dhabi and Dubai granting approvals. Galaxy, also known as Galaxy Digital, a digital asset service firm, has acquired an Abu Dhabi Global Markets (ADGM) license, allowing it to open an entity (office) in the emirate.
“This milestone unlocks new opportunities for Galaxy and strengthens ADGM’s reputation as a hub for digital asset innovation”, said Mike Novogratz, Founder and CEO of Galaxy, in an official statement.
For Arvind Ramamurthy, the Chief Development Market Officer, ADGM’s “progressive ecosystem” offers a “robust regulatory framework, world-class infrastructure, and a collaborative environment for innovation”, and this helps the digital asset firm to thrive globally.
Galaxy’s ADGM license follows other firms
One after one, crypto firms are securing regulatory nods from both Dubai and Abu Dhabi. However, it does not imply that any crypto firms can earn the license quickly. The financial authorities have a comprehensive set of practical rules, and they check whether companies approaching them are ready to operate according to the rules, plus their eligibility to offer services to clients.
A recent example of a crypto exchange securing ADGM’s license is Binance. The exchange received a full suite of licenses from the Financial Services Regulatory Authority (FSRA) of ADGM to operate its platform. This made Binance the first crypto exchange to secure a complete global license under the ADGM framework.
Kraken, another leading crypto exchange, received a full financial license from ADGM in April 2022.
In a country where mega crypto events like Solana Break Point, Binance Blockchain Week, and Bitcoin MENA happen, crypto firms and their founders are keenly observing how they can expand their services in this land. More than the events happening, the comprehensive digital asset frameworks, like the Virtual Assets Regulatory Authority (VARA), are playing a significant role in shaping the blockchain industry of the UAE.
