FTX Europe & MENA, an affiliate of FTX Trading Ltd, today announced that it has been licensed to establish and operate its Virtual Asset (VA) Exchange and Clearing House services in Dubai, United Arab Emirates (UAE).

As an anchor within Dubai’s programme to drive progressive global VA Regulatory frameworks, FTX Europe & MENA becomes the first fully regulated VA Exchange to trial complex crypto derivatives dedicated to professional institutional investors within a reputed international jurisdiction.

FTX CEO, Sam Bankman-Fried, commented on the news,

“FTX is proud to be the first licensee under Dubai’s prudential supervision regime. It’s an honor to be one of the first approved applicants in such a specialised category and we are excited to be able to introduce complex crypto-derivatives products with centralised counterparty clearing to institutional markets.

FTX receiving this approval is a continuation of our mission to be at the forefront of licensing and regulation around the world. We plan to continue playing a lead role in advancing the digital asset industry in countries that provide a robust regulatory framework, while also operating with the highest security, risk, and investor protection standards.”

Dubai is the only global economy to have an independently regulated environment under its newly announced Virtual Asset Regulatory Authority (VARA), to be governed by comprehensive legislation and internationally applicable policy frameworks. The license issued under prudential supervision, allows FTX to operate within Dubai’s ‘test-adapt-scale’ VA market model which has rigorous regulatory oversight and mandatory FATF compliance controls that are similar to the requirements of Tier 1 international financial markets.

The VA Exchange [VAX] License within this specialist Dubai regime allows FTX to be the first provider of regulated trading and clearing services for crypto-specific derivatives, on trusted guard-rails applicable in legacy markets like NASDAQ Dubai, assuring transparency and investor security. As an approved participant with this specialist regime, FTX will work with Dubai on setting global operating standards to facilitate traceable and secure cross-border trades for the entire crypto industry.

Patrick Gruhn, Head of FTX Europe, adds,

“It is a major achievement for FTX to be approved as the first exchange under this unique regulatory framework. I’m excited to expand our presence in the MENA especially as countries like the United Arab Emirates continue to set a new bar when it comes to crypto regulation.”