Arabian Bourse Gains Initial Approval to Transform Crypto Trading in the UAE

Regulatory Green Light for Arabian Bourse

In a significant step for the crypto space in the Middle East, the Arabian Bourse (ABX), a collaboration between GMEX Group and Arshad Khan, has received initial regulatory approval from the Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM). This promising news, reported on June 6 by Markets Media, is likely to reshape how crypto assets are traded and stored in the region.

Building a Compliant Eco-system

With an aim to cater to both institutional and retail traders, the Arabian Bourse is set to emerge as a fully-regulated crypto asset exchange and custodian. The project utilizes technology from GMEX Group’s blockchain business, particularly the innovative GMEX Fusion, which combines centralized and blockchain distributed ledger technology for enhanced security and efficiency.

Vision for the Future

The joint venture, spearheaded by industry veterans, envisions ABX as an integrated hub for crypto assets. This ecosystem will encompass everything from listing and trading to settlement, alongside digital custody, depository, and data services. Basically, they are out to make crypto trading as smooth as your favorite streaming service, minus the buffering.

Strategically Located in Abu Dhabi

Choosing to base ABX in the ADGM authorities building couldn’t be more strategic. Besides being in a supportive regulatory environment, Abu Dhabi boasts a high concentration of international financial institutions and a burgeoning crypto industry. It’s like setting up a food truck in the middle of a hungry crowd — a recipe for success!

The Growing Crypto Landscape in the UAE

The UAE has been a hotspot for crypto innovation, as evidenced by BitOasis, a local exchange that secured preliminary regulatory approval in mid-May. According to data from CoinSchedule, the UAE has been the most significant contributor to global crypto token sales since 2019, amassing over 25% of the total funds raised worldwide — that’s a whopping $210.5 million!

Ringing the Alarm for Regulation

In the wise words of Richard Teng, head of the ADGM’s Financial Services Regulatory Authority, robust international regulations are crucial. He pointed out that every time a coin goes missing, it chips away at public confidence in cryptocurrencies. So, while ABX is set to revolutionize crypto trading in the region, the need for stringent regulations is more pressing than ever.