Crypto investment platforms eToro and M2 have recently been granted varying levels of authorization by the ADGM Financial Services Regulatory Authority to offer their services in the United Arab Emirates. This authority is responsible for overseeing the UAE’s international financial center, the Abu Dhabi Global Market (ADGM).
eToro has been approved for a Financial Services Permission (FSP), enabling it to operate as a broker for securities, derivatives, and crypto assets. Meanwhile, cryptocurrency exchange M2 has been recognized as a fully regulated Multilateral Trading Facility (MTF) and custodian. This recognition allows M2 to onboard both UAE residents and institutional clients.
Yoni Assia, the founder and CEO of eToro, views the UAE licensing as a significant step in the company’s global expansion strategy. This development follows eToro’s September achievement of obtaining a Crypto Asset Service Provider (CASP) registration from the Cyprus Securities and Exchange Commission (CySEC). Hedva Ber, eToro’s deputy CEO, emphasized the importance of a European operating license for a crypto company with global aspirations.
M2’s offerings in the UAE will cater to both retail and institutional clients, including services like crypto custody, trading in UAE dirham-based Bitcoin and Ether, and dirham on/off-ramp services. Stefan Kimmel, CEO of M2, regards the timing of the license as ideal, coinciding with a resurgence of positive investor sentiment.
As the UAE continues to draw international crypto entities with operational licenses, the ADGM’s registration authority introduced comprehensive regulations in November to govern Web3 organizations. The Distributed Ledger Technology (DLT) Foundations Regulations 2023 are designed to provide clear regulatory guidelines for blockchain foundations, Web3 entities, decentralized autonomous organizations (DAOs), and traditional foundations venturing into DLT.
Under these regulations, establishing a “DLT Foundation” involves submitting a signed charter. This charter must detail the foundation’s initial assets, governance structure, and token issuance plans (if applicable). It should also include the organization’s white paper, tokenomics paper, and a link to a technical document known as a DLT Framework.
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