Two cryptocurrency investment platforms, eToro and M2, have received regulatory approval to provide services in the United Arab Emirates (UAE) from the ADGM Financial Services Regulatory Authority, which oversees the Abu Dhabi Global Market (ADGM), the UAE's renowned international financial center.
eToro secured approval via the Financial Services License (FSP), enabling the platform to function as a broker for securities, derivatives, and crypto assets. Conversely, M2, a cryptocurrency exchange, obtained recognition as a fully regulated Multilateral Trading Facility (MTF) and custodian, positioning it to serve UAE residents and institutional clients.
Expressing enthusiasm, Yoni Assia, the founder and CEO of eToro, hailed the UAE license as a pivotal achievement in the platform's ongoing global expansion efforts. This follows eToro's earlier reception of a Crypto Asset Service Provider (CASP) registration from the Cyprus Securities and Exchange Commission (CySEC) in September. Hedva Ber, eToro's deputy CEO, emphasized the significance of securing a European operating license for a cryptocurrency company with a focus on worldwide growth.
M2's licensed services in the UAE target both retail and institutional clients, encompassing cryptocurrency custody, Bitcoin transactions in UAE dirhams, Ethereum transactions in dirhams, and on/off ramp services. Stefan Kimmel, the CEO of M2, cited the license's timing as opportune, aligning with the resurgence of positive investor sentiment. While the UAE continues to draw international cryptocurrency entities through operating licenses, ADGM's registration authority rolled out comprehensive regulations in November, governing Web3 organizations.
The approval granted to eToro and M2 by the ADGM Financial Services Regulatory Authority highlights the strategic importance of obtaining licenses within the UAE's evolving cryptocurrency landscape, offering enhanced capabilities to cater to local and institutional clients and signaling a deeper engagement within the region's financial ecosystem.
