Just-In: QCP Capital Expands To Abu Dhabi With Initial Regulatory Approval

Just-In: QCP Capital Expands To Abu Dhabi With Initial Regulatory Approval

QCP Capital, a prominent player in the crypto options trading realm, has secured initial approval to establish operations in Abu Dhabi. This marks another significant expansion for crypto firms in the Middle East. Nonetheless, the firm is still striving to secure complete approval in the region.

QCP Bags Regulatory Nod In Abu Dhabi

The Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) granted QCP Capital in-principle approval to engage in regulated activities, as disclosed in a statement on Tuesday, May 7. Notably, this milestone positions QCP as the first Singapore-based digital-asset market maker and broker dealer to receive preliminary approval, as confirmed by an ADGM spokesperson.

With the United Arab Emirates intensifying efforts to attract more crypto entities, notable names like Binance, OKX, and Nomura’s Laser Digital have already made moves. QCP, boasting nearly $60 billion in crypto derivatives trading volume last year, intends to transition some of its 70-plus employees to Abu Dhabi upon securing a full license.

Melvin Deng, QCP’s CEO, underscored Abu Dhabi’s progressive regulatory stance, emphasizing its holistic approach to digital assets within the broader financial ecosystem. According To a Bloomberg report, Deng stated, “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.”

Moreover, geographical considerations also influenced QCP’s expansion strategy, Deng noted owing to the global nature of crypto. For context, a report by Ernst & Young, as of September 2023, shows that monthly crypto derivatives volume reached $1.33 trillion. Moreover, the majority of the activity occurs beyond the U.S. 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 remarked. In addition, he emphasized the region’s similarities to Singapore and the desire to leverage its capabilities to establish a new marketplace.

Also Read: Digital Chamber Slams SEC’s ‘Regulation by Intimidation’ Strategy

Recent Partnership In Abu Dhabi

Furthermore, in a recent development, QCP announced a partnership with Abu Dhabi venture capital firm, Further Ventures. The collaboration aims to pioneer new digital asset products. Upon securing the full license, the firm plans to prioritize core activities such as trading and market making in the region.

Moreover, Arvind Ramamurthy, chief of market development at ADGM, expressed optimism about the evolving digital assets landscape in the Middle East. Additionally, he anticipates more companies, akin to QCP, recognizing ADGM’s progressive and comprehensive regulatory frameworks. This instills confidence in selecting Abu Dhabi as their regional hub.

Also Read: Ex-SEC Official John Reed Stark to Testify on Crypto Enforcement

The post Just-In: QCP Capital Expands To Abu Dhabi With Initial Regulatory Approval appeared first on CoinGape.


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