Crypto-currency is the future of online transactions according to many, and Abu Dhabi’s financial regulator understood that quite precisely by giving the initial approval to the creation of Arabian Bourse, which is going to become the first ever fully-regulated crypto asset exchange in Abu Dhabi.
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) released the statement this Monday, and expects Arabian Bourse to operate as a full-fledged crypto asset exchange as well as a digital custodian. It is a joint venture between digital business solution giant GMEX Group and the founder of regional exchanges Arshad Khan.
“The last few years have seen remarkable growth in the largely unregulated digital-assets market. ABX will address this issue by offering a fully regulated, robust and transparent eco-system," Mr Arshad Khan, co-founder and chief executive of Arabian Bourse, told Bloomberg.
Getting the approval was no easy task, as Arabian Bourse had to show the effectiveness of their Digital Asset Kiosk Machine which started operating in ADGM last month. As it was a success, finally the regulator was more than happy to give the nod. Users can insert cash or credit cards in exchange of digital currency, including Bitcoin, using the Digital Asset Kiosk Machine.
Arabian Bourse aims to turn itself into the most preferred platform for crypto asset listing, settlement and trading and Abu Dhabi was chosen because of the rapid growth of the crypto currency within the area.
"Bringing together crypto asset holders, blockchain technology opportunities and related strategic investments, the Arabian Bourse ecosystem will ultimately act as a bridge, aggregating Middle East and Northern Africa (MENA) digital assets activity with other major digital asset centres around the world," the company stated.
The company is currently looking forward to obtain the final licenses and get done with the paperwork to start digital exchange and custodian supports as soon as possible; no timeline was revealed though.
The financial services industry had gone through a transition period due to the massive growth of the digital asset and crypto asset markets. In fact, the transition is still on-going and it is the best possible time for the economies to blend in. With a proper regulatory framework, this industry can bring a lot of positive outcomes.