Abu Dhabi Approves Virtual Asset Firm M2 to Provider Crypto Services

The M2 platform revealed in a Wednesday, August 16 statement lauding successful applications to offer various crypto services in Abu Dhabi. The M2 platform indicated plans to unveil purchase, sale, and custodial services for UAE-based clients.

The virtual assets firm intends to unveil the digital assets targeting UAE-based institutional and retail clients on an unnamed date in 2023. The Financial Services Regulatory Authority (FSRA) approved the application by virtual asset firm M2 seeking a multilateral trading facility. The permission from the regulator will allow the firm access to the institutional and retail clients within the Abu Dhabi Global Market (ADGM).

M2 Platform to Offer Yield, Derivative and Crypto Purchase

The M2 platform traces its journey to 2022 with its development targeting long-term vision to nurture high trust, security, and integrity levels for the emerging digital asset class. The announcement indicates that once the M2 platform goes live, it will facilitate the users to purchase cryptocurrencies from fiat money while accessing yield services and derivatives. 

M2 chief executive Stefan Kimmel lauded the license approval as the initial phase of its journey. The executive indicates that the M2 platform would sustain the dialogue with the ADGM to guarantee transparency and custody services for clients. 

Kimmel added that ADGM introduced a regulatory framework under formulation in 2018. The five years involved holding consultations with various stakeholders to establish clear rules. This understanding informs M2 leadership to prioritize upholding the highest standards in its operations. As such, he indicated that M2 would align its service provisions with the UAE’s vision of becoming a global digital asset leader. 

AI Trading Robot

Kimmel added that the ADGM licensing application process mandates upholding high standards formulated to match the requirements for multilateral trading facility permits. 

Kimmel lauded the approval of the M2 application as one illustrating that it fulfilled the strict due diligence required by the regulatory authority. He added that such constitutes proof that UAE users could trust its platform in exercising transparency and ensuring security. 

M2 Virtual Asset Firm Pursues European Operating Licenses

Kimmel admitted that the fulfillment and exceeding regulatory requirement involves a continuous process allowing M2 to offer diversified services to retail and institutional clients. 

Kimmel restated the M2 team’s focus on ensuring the upcoming offerings secure permits in all jurisdictions. The executive disclosed that M2 is pursuing approval of operating licenses in several European countries. 

Beyond the approval of M2, the ADGM implemented a comprehensive regulatory framework for virtual assets. Regulatory clarity has attracted several leading companies desiring to establish business within the regulated financial and economic zone. 

The ADGM chief executive Salem Darei profiled the market as one oriented towards facilitating the unlocking growth opportunities. Also, it targets fostering investments within the region’s virtual asset sector. 

ADGM Devoted to Enhancing Abu Dhabi’s Crypto Landscape

Darei acknowledged that Abu Dhabi was growing gradually as global, local, and regional investors pursued expansion. He affirmed that ADGM would remain committed to enhancing Abu Dhabi’s cryptocurrency landscape. Its accomplishment would actively support the process of diversifying the Abu Dhabi economy.

Revisiting the licensing events shows that ADGM granted Binance to offer financial services. ADGM gave Binance the permit in November following the in-principle approval offered in 2023.

Recently, cryptocurrency exchange Rain secured a regulatory permit in July 2023. It allows Rain to offer UAE users brokerage and custody services involving virtual assets.

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