The United Arab Emirates has granted Kraken a cryptocurrency license

The major cryptocurrency exchange Kraken has gained regulatory approval to operate as a virtual asset service provider in the United Arab Emirates

The US-based digital currency platform can now do business in Abu Dhabi and provide its services to local investors across the Emirates, according to a Bloomberg.

In the near future, the heavyweight exchange plans to create a regional headquarters in the Emirati territory.

With over 6 million customers in more than 190 countries, the world's fourth-largest exchange by trading volume will now provide trading pairs in the UAE's local currency, the dirham (AED).

Curtis Ting, Managing Director of Kraken, believes that AED trading pair options are an important step toward increasing liquidity and connecting traditional domestic banking institutions with crypto-assets.

Ting remarked in a recent interview with CNBC,

“For us, it’s really important to facilitate access to global markets and global liquidity by making sure that investors and traders in the region have access to local currencies [trading pair].”

According to Ting, the platform's AED feature will let investors to conduct trades, deposits, and withdrawals in the UAE's native fiat currency.

In terms of when Kraken will start operating in the UAE, Dhaher bin Dhaher, the Chief Executive Officer of Abu Dhabi's Global Markets Registration Authority, stated investors may expect activity to start in Q2 or Q3 2022.

The United Arab Emirates is on its way to become a crypto-paradise

Kraken is the first and only virtual asset exchange to be granted a license in Abu Dhabi, following the UAE's recent crypto licensing regulation.

Major platforms including as Binance and FTX have also received digital asset licenses from the Emirati government, with intentions to open regional offices.