QCP Capital Expands Operations to Abu Dhabi With Initial Regulatory License Approval

In a bid to continue its global expansion plan, QCP Capital, a prominent cryptocurrency options trading firm, has expanded its services to Abu Dhabi after receiving an initial regulatory license to operate in the region. This development positions QCP Capital as the first Singapore-based options trading firm to be licensed within the region even though it is still pushing to get complete approval.

QCP Capital Expands Presence in Abu Dhabi

According to a statement dated May 7 reviewed by Bloomberg, the Financial Services Regulatory Authority of Abu Dhabi Global Markets (ADGM) granted the digital asset options trading desk in-principle clearance for regulated digital asset activity.

Meanwhile, other top crypto exchanges like Binance, OKX, and Nomura’s Laser Digital have already taken action to expand operations to the region as the United Arab Emirates steps up its efforts to draw in additional cryptocurrency firms. QCP, which recorded a trading volume of around $60 billion in cryptocurrency futures last year, plans to relocate part of its more than 70 staff to Abu Dhabi once it obtains a complete license.

In a statement to Bloomberg, the CEO of QCP praises Abu Dhabi’s stance on cryptocurrency, adding that the UAE capital has impressive regulators that picture cryptocurrency as a complete ecosystem.

“Abu Dhabi has got very progressive regulators in that they are thinking about the digital assets as a complete ecosystem with all of traditional finance,” he said

Additionally, Deng pointed out the geographic factor’s influence on QCP Capital’s expansion plan into Abu Dhabi. To put things in perspective, according to an Ernst & Young analysis from September 2023, the monthly volume of cryptocurrency derivatives hit $1.33 trillion, with most of the action taking place outside of US borders.

“The Middle East is actually quite a good confluence for capital flows from Europe, to the Middle East region, as well as Asia,” Deng said while emphasizing the similarities of Abu Dhabi to Singapore in their willingness to take advantage of their capabilities to establish a new crypto hub.

In addition, QCP recently revealed a collaboration with Further Ventures, an Abu Dhabi venture capital firm. The purpose of the partnership is to become a leader in creating new products relating to digital assets. The company intends to give top priority to its main operations in the area, which include trading and market making, after obtaining the complete license.

UAE Positions itself as the Go-to Region for Crypto

Meanwhile, the UAE has continued its effort to be a welcoming region for cryptocurrencies and other blockchain products. The country’s financial regulators VASP (Virtual Asset Service Provider) granted Binance, the biggest cryptocurrency exchange by trade volume, an operational license in Dubai in April following co-founder Changpeng Zhao’s resignation as a voting member of the exchange’s local entity.

Additionally, in a previous report by Coinfomania, crypto exchange giant Crypto.com received a full operational license from VASP on April 9, permitting the firm to offer spot trading, staking brokerage, and other OTC offerings around settlements for selected markets. Consequently, the approval made Crypto.com the first global crypto operator to be fully operational with fiat in the UAE.