QCP Capital Receives Green Light to Grow in Abu Dhabi, Enhancing Middle East Presence

QCP Capital, a leading options trading desk in the digital asset sector, has received preliminary approval to begin operations in Abu Dhabi, signifying its entry into the Middle East market.

The Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) has granted in-principle approval to the firm, making it the first digital-asset market maker and broker-dealer from Singapore to achieve such acknowledgment in the area, as reported by Bloomberg on Tuesday.

QCP Capital intends to move some of its more than 70 employees to Abu Dhabi upon obtaining a full license.

QCP Capital Achieved $60B in Crypto Derivatives in 2023

Last year, QCP Capital recorded almost $60 billion in trading volume for crypto derivatives.

The company’s CEO, Melvin Deng, expressed excitement regarding the progressive regulators in Abu Dhabi, underscoring their welcoming stance towards digital assets and their synergy with conventional finance.

In a discussion with Bloomberg, Deng noted that Abu Dhabi’s strategic geographical positioning significantly influenced QCP’s choice to expand into the region, reflecting the global character of the cryptocurrency market.

As per a report by Ernst & Young, the monthly volume of crypto derivatives hit $1.33 trillion as of September 2023, with most activities occurring outside of the United States.

Deng further highlighted the Middle East’s potential as a center for capital movements, acting as a bridge between Europe, Asia, and the region itself.

Drawing comparisons to QCP’s base in Singapore, he mentioned that the company aims to utilize the region’s resources to create another marketplace.

QCP recently established a partnership with Further Ventures, based in Abu Dhabi, indicating its dedication to innovating new digital asset products in collaboration with local firms.

Upon receiving its full license, QCP’s primary focus in the Middle East will be on essential operations such as trading and market making.

UAE Continues to Lure Crypto Firms

The United Arab Emirates (UAE) has been proactively working to attract a greater number of cryptocurrency enterprises, successfully drawing in operations from significant players like Binance, OKX, Bitget, and Nomura’s Laser Digital.

UAE dominating in crypto with 72% into #Bitcoin! No surprise, smart moves from a smart nation. pic.twitter.com/Nr9mmlYMqQ

— fity.eth (@Fityeth) April 22, 2024

Recently, the Austrian crypto exchange Bitpanda announced it is extending its operations to the Middle East and is establishing a regional office in the UAE.

The firm has appointed former 1inch Network’s business development head, Walid Benothman, to oversee its operations in the region.

According to reports, the UAE plans to utilize cryptocurrency for trade in the future and is also working on a regulatory framework, as stated by the country’s minister of state for foreign trade.

Last year, Thani Al-Zeyoudi mentioned that the nation is contemplating trade in currencies beyond the US dollar.

One area the country is looking to enhance is cryptocurrencies, he remarked, adding:

“Crypto will play a major role for UAE trade going forward. The most important thing is that we ensure global governance when it comes to cryptocurrencies and crypto companies.”

Al-Zeyoudi also pointed out that the UAE is continuing to refine its crypto regulatory framework.

He indicated that the emphasis will be on establishing the Gulf nation as a significant hub with crypto-friendly regulations that also provide adequate protections.

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