QCP Capital, a Singapore-based digital asset trading firm, has secured in-principle approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) for regulated digital asset activities.
This move allows the trading platform to join the expanding roster of major crypto companies expanding operations in Abu Dhabi.
According to Bloomberg’s report, this milestone makes the seven-year-old company the first Singaporean crypto market maker and broker-dealer to gain preliminary approval to operate in the ADGM-free zone.
In 2023, QCP reported $60 billion in derivatives trading volume, standing as one of the largest crypto options trading desks globally. Consequently, the firm employs about 70 people, some of whom will relocate to Abu Dhabi once full regulatory approval is secured.
At present, the Abu Dhabi Global Markets emerges as a hub for institutional crypto investment activity.
Blockchain data platform Chainalysis stated that large institutional transactions dominated digital asset flows in the Middle East. The data reflected $1.33 trillion of monthly volume of crypto derivatives for September 2023, citing that majority of the activities take place outside the United States.
Remarkably, Abu Dhabi has been particularly proactive in attracting cryptocurrency companies. In April, QCP announced a regional partnership with Further Ventures to aid its Middle East expansion, as per Coinbase.
Coinbase's new blockchain investment products for institutions also gained in-principle approval from ADGM's FSRA.
As traditional financial centers slowly warm to cryptocurrency, smaller jurisdictions have raced to attract companies. With the latest regulatory approval, Abu Dhabi marks its name as one of the world's fastest-growing crypto hubs.