M2 secures financial services permission in Abu Dhabi
The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) has granted virtual asset firm M2 the financial services permission to establish a multilateral trading facility in the capital of the United Arab Emirates.
The FSP approval will enable M2 to provide custody to professional clients, provided they meet the conditions outlined by FSRA. As such, the milestone helps broaden the perspectives and business appraisal of the brand as it seeks to cash in on the region’s interest in cryptocurrencies.
The M2 platform, set to launch later this year, will allow virtual asset investors in the UAE to purchase major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). The platform will offer institutional-grade trading features and a secure on and off-ramp for fiat payments. As the M2 platform evolves, it plans to expand its offerings to include derivatives and a high-yield product.
Before securing financial services permission, the M2 platform and other applicants underwent an in-principle approval (IPA) process, which established the conditions they needed to meet for regulatory approval.
Stefan Kimmel, M2 CEO, said: “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. Over the past five years the ADGM regulatory framework has established clear rules for those operating in the virtual assets sector and M2 will uphold the highest standards to reflect their vision as the UAE continues to affirm its reputation as a global leader in this space.”
Salem Al Darei, Chief Executive Officer of ADGM Authority, added: “We are delighted to welcome M2 to ADGM’s international virtual asset community, further solidifying ADGM’s position as a leading International Financial Centre and a catalyst for business expansion. At ADGM, our mission has always been centered around unlocking new growth opportunities and fostering investments in the virtual assets sector. By integrating companies like M2 into our ecosystem, we remain committed to enhancing Abu Dhabi’s digital asset landscape and actively supporting the diversification of our thriving economy.”
Abu Dhabi has one of the most sophisticated regulatory frameworks for digital assets providing clarity for entrepreneurs and their customers. In terms of the fintech landscape in the Middle East, the UAE in particular is already showing strong signs of support for fintech, as well as some early success stories.