QCP Capital, a leading options trading desk for digital assets, has 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) 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. In 2023, QCP Capital recorded $60 billion in crypto derivatives trading volume. The company’s CEO, Melvin Deng, expressed enthusiasm about the forward-thinking regulators in Abu Dhabi and the region’s integration of digital assets with traditional finance. Deng highlighted Abu Dhabi’s strategic geographical location and the global nature of the cryptocurrency industry as factors in the decision to expand to the Middle East.
According to a report by Ernst & Young, the monthly volume of crypto derivatives reached $1.33 trillion as of September 2023, with the majority of activity occurring outside the United States. Deng emphasized the Middle East’s potential as a hub for capital flows, serving as a link between Europe, Asia, and the Middle East region. QCP aims to leverage the capabilities of the region to establish another marketplace, similar 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.
The United Arab Emirates (UAE) has been actively working to attract more cryptocurrency companies, successfully enticing operations from major players like Binance, OKX, Bitget, and Nomura’s Laser Digital. Austrian crypto exchange Bitpanda recently announced its expansion into the Middle East and the opening of a regional office in the UAE. The firm has appointed Walid Benothman, former 1inch Network’s business development and head of growth, to lead its operations in the region. The UAE plans to use crypto for trade in the future and has set up a working regulatory framework, according to the country’s minister of state for foreign trade, Thani Al-Zeyoudi. Al-Zeyoudi stated that the UAE is considering trade in currencies other than the US dollar and that crypto will play a major role in UAE trade going forward.
Al-Zeyoudi added that the UAE continues to work on its crypto regulatory regime, focusing on making the Gulf country a major hub with crypto-friendly policies and sufficient protections in place for investors and stakeholders. The country aims to ensure global governance when it comes to cryptocurrencies and crypto companies. With the influx of cryptocurrency firms and the UAE’s proactive approach to attracting digital asset companies, the region is poised to become a significant player in the global cryptocurrency market. QCP Capital’s expansion into Abu Dhabi signals the growing interest and potential opportunities in the Middle East for businesses operating in the digital asset space.
