QCP Capital Secures Approval to Expand into Abu Dhabi, Strengthening Presence in the Middle East

QCP Capital, a prominent options trading desk for digital assets, has received initial approval to operate in Abu Dhabi, marking its expansion into the Middle East. ,The Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) has granted in-principle approval to the company, making it the first digital-asset market maker and 
broker dealer
 from Singapore to receive such recognition in the region
, Bloomberg 
reported Tuesday
.
 ,QCP Capital plans to relocate a portion of its 70-plus employees to Abu Dhabi once it obtains a full license.,


QCP Capital generated nearly $60 billion in crypto derivatives trading volume last year.,The company’s CEO, Melvin Deng, expressed enthusiasm about the forward-thinking regulators in Abu Dhabi, highlighting their friendly approach to digital assets and their integration with traditional finance. ,In an interview with Bloomberg, Deng explained that Abu Dhabi’s strategic 
geographical
 location played a significant role in QCP’s decision to expand into the region, considering the global nature of the cryptocurrency industry.,According to a report by Ernst & Young, the monthly volume of crypto derivatives 
reached
 $1.33 trillion as of September 2023, with 
the majority of
 activity occurring outside the United States.,Deng also emphasized the Middle East’s potential as a hub for capital flows, 
serving
 as a link between Europe, Asia, and the Middle East region.,Drawing parallels to QCP’s home base in Singapore, he stated that the company aims to leverage the region’s capabilities to establish another marketplace. ,QCP recently 
formed a partnership
 with Abu Dhabi-based Further Ventures, signaling its commitment to developing new digital asset products in collaboration with local entities.,Once QCP obtains the full license, its initial focus in the Middle East will be on core businesses such as trading and market making. ,


The United Arab Emirates (UAE) has been actively working to attract more cryptocurrency companies, successfully enticing operations from major players like Binance, OKX, 
Bitget
, and Nomura’s Laser Digital. ,More recently, Austrian crypto exchange Bitpanda revealed it is 
expanding its operations to the Middle East
 and opening a regional office in the UAE.,The firm has tapped former 1inch Network’s business development and head of growth Walid Benothman to lead its operations in the region.,As reported, the UAE 
plans to use crypto
 for trade in the future and also set up a working regulatory framework, according to the country’s minister of state for foreign trade. ,Last year, Thani Al-Zeyoudi said the country is considering 
a trade
 in currencies other than the US dollar. ,One area the country is looking to expand is cryptocurrencies, he said, adding:,Al-Zeyoudi added that the UAE continues to work on its crypto regulatory regime. ,He said the focus will be on making the Gulf country a major hub with crypto-friendly policies that also have sufficient protections in place. ,QCP Capital Recorded $60B in Crypto Derivatives in 2023