A prominent cryptocurrency options trading platform is set to expand its services in the UAE by launching spot and derivatives trading starting January 1, 2025. This transition involves relocating all operational activities to a new entity based in Dubai, which will include transferring approximately USD 50 billion in open interest to this jurisdiction.
This strategic decision follows the platform obtaining a license from Dubai’s Virtual Assets Regulatory Authority (VARA) and moving its headquarters to the city, signaling a commitment to doing business within a regulated framework. The exchange aims to centralize all trading activities under its Dubai entity, which will be authorized to offer a comprehensive range of products such as spot trading, perpetual contracts, futures, options, and post-trade services.
Dubai has emerged as an attractive destination for cryptocurrency enterprises due to its progressive regulatory environment and favorable business conditions. The city’s legal framework for digital assets has become a draw, as it promotes innovation and growth in the crypto sector. The platform is set to cater to qualified and institutional clients directly under its Dubai-regulated umbrella, ensuring compliance with local regulatory standards.
However, retail clients will still be supported through a previously established entity based in Panama, which will now function as a broker member of the Dubai operation. This allows the platform to maintain a level of service for smaller investors while enhancing its offerings for larger, institutional clients.
As part of this transition plan, all clients are required to accept modified terms of service by the end of 2024. A critical aspect of this update is the implementation of a mandatory know-your-customer (KYC) process. Failure to complete the KYC requirements will result in accounts being limited to a “reduce only” mode, where clients can only close existing positions rather than open new ones. This move emphasizes the platform’s commitment to adhering to global regulatory standards, which have grown more stringent as the cryptocurrency industry matures.
The increasing interest from crypto firms in Dubai has been driven by the region’s clear regulatory guidelines and supportive business environment, which also feature a lower corporate tax regime. Recent months have seen several other cryptocurrency companies secure licenses in Dubai, further reinforcing the city’s growing significance in the global crypto landscape.
As the platform evolves to meet the demands of its institutional clientele, it emphasizes its dedication to delivering quality services while operating within the highest standards of transparency and regulatory compliance. The relocation to Dubai represents not only a strategic business move but also a proactive approach to adapting to a rapidly changing market landscape where regulatory expectations are increasingly critical.