Abu Dhabi Global Market (ADGM) has announced the grant of an operational license to digital asset firm M2 to provide a wide range of digital asset services in the United Arab Emirates (UAE).
The Financial Services Regulatory Authority (FSRA) issued the license after M2 successfully fulfilled all the necessary requirements to operate in the country. Under the permit, M2 has been cleared to “operate a multilateral trading facility and offer custody services to UAE residents.”
Virtual Assets Trading platform, @M2Exchange, has been granted an FSP from #ADGM #FSRA, allowing #M2 to operate a dynamic multilateral trading facility and provide secure custody services for #virtual_assets to #UAE residents, catering to both institutional and retail clients.… pic.twitter.com/JuYjnsbvPY
— Abu Dhabi Global Market (@ADGlobalMarket) August 16, 2023
Moving forward, M2 says it will roll out services for retail and institutional investors to buy, sell, and hold digital currencies. M2’s platform has been undergoing development in the UAE for nearly 12 months, placing a premium on a military-grade security framework to protect investor funds.
“The M2 team is delighted to have received confirmation of the ADGM FSRA license, as it represents the approval of one of the most sophisticated and respected regulators in the world,” said M2 CEO Stefan Kimmel.
“The process of obtaining the license is the first step on our journey, and we will remain in close dialogue with ADGM to ensure transparency around the custody of client assets,” he added.
Despite receiving the license, M2 will still require regulatory approval for the full-scale launch of the trading platform, scheduled to be released before the end of the year. Kimmel disclosed that M2 would be keen on increasing the scope of its offering to include derivatives and at least one market-leading yield product.
Kimmel is confident in M2’s ability to ensure compliance with existing rules in the UAE while attracting users to the platform, noting the wealth of experience of M2’s executives in both Web3 and traditional finance as reasons for setting up the firm for success in the UAE.
“The M2 virtual asset trading platform and its governance protocols will mirror the rigorous standards adopted by the financial services industry while maintaining the innovative spirit of the fast-emerging cryptocurrency and blockchain sector,” read the press release.
Apart from access to leading digital assets, M2 says it will offer users other perks, including secure on and off-ramp for fiat transactions. Kimmel hinted at a planned expansion to other jurisdictions, specifically targeting the European Union as a hub for its services.
The ADGM and digital assets
ADGM, described as an industry agnostic and ideal business ecosystem, announced a groundbreaking $2 billion Web3 initiative after unveiling five guiding principles for regulating digital currencies.
The free-trade zone has also leaned on blockchain to streamline its operations, using it for Know Your Customer (KYC) processes. In November, ADGM courts confirmed using blockchain in the ecosystem’s legal system to provide “secure and immutable judgments” for parties.
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