Crypto exchange platform FTX has received approval for a new virtual asset license in Dubai. It’s the first exchange to receive such authorization and as a result, FTX is hoping to open regional offices there to cater to the regional market. Here is what we know about this latest deal:
FTX is now the first digital assets company to get authorization to operate in Dubai
The exchange also recently expanded its foothold in Europe with new offices in Cyprus.
However, the FTX Token remained largely unchanged after the news.
Data Source: Tradingview
Will Dubai matter for the FTX Token?
2022 has started off quite impressively for FTX. At the start of the year, the exchange confirmed it had raised around $400 million in new funding. This placed the value of the company at $32 billion.
Also, FTX has expanded into Europe after receiving authorization to set up operations in Cyprus. The Dubai license reflects a deliberate effort by the company to expand globally, especially in regions that are traditionally underserved by the crypto derivatives market. But FTX is not the only exchange making moves in the Middle East. Just recently, Binance acquired an operational license in Bahrain.
Nonetheless, investors are yet to fully process the impact of the new license. At press time, the FTX token remained largely unchanged in 24-hour intraday trading. The coin was selling at $40.32, down by less than 1%.
Can FTX go global?
So far, FTX has dominated the derivatives market in the US. But there is a huge market out there, especially in countries that have crypto-friendly policies.
The Middle East looks like a decent place to start. If indeed, FTX can establish a foothold in Dubai, it will be much easier to expand its services in a more diversified global client base in the long run.