The world’s third-biggest cryptocurrency exchange FTX announced today that it acquired the virtual asset license in Dubai.
As crypto expansion touches every corner of the world, it was only a matter of time before the leading CEXs and DEXs arrived in the Middle Eastern countries as well.
FTX in Dubai
The exchange received its Dubai trading license today, following which it intends on establishing a regional headquarter in the city.
The exchange company had recently launched its Europe and the Middle East focused division ‘FTX Europe’ through which it will be offering complex crypto derivative products to institutional markets.
— FTX (@FTX_Official) March 14, 2022
This comes days after Dubai’s ruler announced the new crypto law and the launch of the Dubai Virtual Asset Regulatory Authority (VARA) for the same. Mohammed bin Rashid, Vice President and Prime Minister stated that the Dubai Virtual Asset Regulation Law would establish UAE as a leader in this space.
Recently, Binance revealed that it too is in discussion with the Dubai World Trade Center to get a license in the country.
The Middle East is an important zone for cryptocurrency, receiving a 7% share of crypto’s global value. Furthermore, the country and its investors are more trusting towards centralized exchanges over decentralized options.
Chainalysis report reveals that while the Middle East received $271.7 billion worth of cryptocurrency last year, only a third of it was facilitated by DeFi options. Regardless the activity still marked a 1500% increase.
Thus, two of the world’s top three cryptocurrency exchanges entering it will definitely draw more volumes towards the exchanges, in return boosting their tokens – FTT and BNB.
FTT is already soaring thanks to its marketing techniques which have placed the token and the exchange amongst the top performers. Between January 2020 and 2021, the presence of investors on the network increased by 900%, followed by another 11,322% jump by the beginning of 2021.
Similarly for the Binance Coin volumes spiked around May last year, but their overall average even as of today is at an average of $2.3 billion.
Ergo, expanding in the Middle East will not only bring in more users for FTT but also much higher inflows since FTX intends on tapping the institutional clients.