Singapore-Based Digital Asset Firm Receives Preliminary Approval From Abu Dhabi Regulator

According to Bloomberg, a seven-year-old Singapore-based company has received preliminary approval from the Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) to conduct regulated activities. This makes the firm the first digital-asset market maker and broker dealer in Singapore to receive such approval, as per an ADGM spokesperson. The United Arab Emirates' progressive regulators and the geographical location were key factors in the company's decision to expand to the region. The company, known as QCP, has noted the global nature of cryptocurrency, with the monthly volume of crypto derivatives standing at $1.33 trillion as of September 2023. QCP's expansion into the Middle East is seen as a strategic move, given the region's strong capital flows from Europe and Asia. The company's representative, Deng, who joined QCP in 2021 after a 15-year tenure at Standard Chartered Bank, stated that the Middle East has similar properties to Singapore, and they aim to leverage these capabilities to establish another marketplace. In recent news, QCP announced a partnership with Abu Dhabi-based Further Ventures, with plans to develop new products in digital assets. Once QCP receives the full license, it will initially focus on core businesses such as trading and market making in the region. As the digital assets landscape continues to evolve in the Middle East, more companies like QCP are expected to recognize the progressive and comprehensive nature of ADGM’s regulatory frameworks, fostering confidence in choosing Abu Dhabi as their regional base.