QCP Capital, a leading options trading desk for digital assets, has recently received initial approval to operate in Abu Dhabi, marking its expansion into the Middle East. The Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) has granted in-principle approval to the company, making it the first digital-asset market maker and broker dealer from Singapore to receive such recognition in the region. QCP Capital plans to relocate a portion of its employees to Abu Dhabi once it obtains a full license. The company recorded nearly $60 billion in crypto derivatives trading volume in 2023, showcasing its success and potential for growth in the region.
The CEO of QCP Capital, Melvin Deng, expressed excitement about the forward-thinking regulators in Abu Dhabi, emphasizing their friendly approach to digital assets and their integration with traditional finance. Deng highlighted Abu Dhabi’s strategic geographical location as a significant factor in the company’s decision to expand into the region, considering the global nature of the cryptocurrency industry. With the monthly volume of crypto derivatives reaching $1.33 trillion as of September 2023, the Middle East presents a lucrative opportunity for QCP Capital to establish a presence and tap into the region’s potential as a hub for capital flows.
QCP Capital aims to leverage Abu Dhabi’s capabilities and establish another marketplace in the Middle East, drawing parallels to its home base in Singapore. The company recently formed a partnership with Abu Dhabi-based Further Ventures, signaling its commitment to developing new digital asset products in collaboration with local entities. Once QCP obtains the full license, its initial focus in the Middle East will be on core businesses such as trading and market making. This move underscores the growing interest and investment in the crypto sector in the region, with the UAE actively working to attract more cryptocurrency companies.
The United Arab Emirates (UAE) has successfully attracted operations from major players in the crypto industry, including Binance, OKX, Bitget, and Nomura’s Laser Digital. The country’s efforts to become a hub for crypto activities have been paying off, with Austrian crypto exchange Bitpanda announcing its expansion into the Middle East and opening a regional office in the UAE. The UAE’s plans to use crypto for trade in the future and establish a working regulatory framework align with its goal of becoming a major player in the global crypto economy.
According to Thani Al-Zeyoudi, the country’s minister of state for foreign trade, the UAE is looking to expand into cryptocurrencies and ensure global governance for crypto companies. The focus will be on creating a regulatory regime that is both crypto-friendly and provides sufficient protections for investors. By implementing policies that support the growth of the crypto industry while maintaining regulatory oversight, the UAE aims to solidify its position as a key player in the global crypto market.Overall, QCP Capital’s expansion into Abu Dhabi and the UAE’s continued efforts to attract crypto companies signal a growing interest in digital assets in the region and highlight the potential for further development and innovation in the cryptocurrency space.
