QCP Capital, one of the world’s leading cryptocurrency options trading platforms, received initial regulatory approval to operate in Abu Dhabi becoming the latest prominent crypto firm to expand in the region.

The digital asset options trading desk received in-principle approval for regulated digital asset activities from the Financial Services Regulatory Authority of Abu Dhabi Global Markets (ADGM), according to a May 7 statement seen by Bloomberg.

This makes QCP Capital the first Singapore-based crypto market maker and broker to receive preliminary approval in the region, according to an ADGM spokesperson.

QCP, one of the largest crypto options trading desks, amassed $60 billion in crypto derivatives trading volume during 2023. The firm has nearly 70 employees, some of whom will be relocated to Abu Dhabi after the QCP receives its full regulatory approval.

Melvin Deng, CEO of QCP, told Bloomberg:

“Abu Dhabi has got very progressive regulators in that they are thinking about the digital assets as a complete ecosystem with all of traditional finance.”

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The UAE is becoming the next global crypto hub

The in-principle approval is in line with the United Arab Emirates’ (UAE) efforts to become a leading global cryptocurrency hub.

In April, the world’s largest crypto exchange, Binance, received a long-awaited Virtual Asset Service Provider (VASP) license in Dubai after co-founder Changpeng Zhao gave up his voting power in the exchange’s local entity.

Binance received a preparatory minimal viable product license from VARA in September 2022, enabling the exchange to offer a range of digital asset services for qualified retail and institutional investors.

Binance received its full license over one and a half years after the preliminary approval. For QCP Capital, the full regulatory license may come sooner, as the trading desk isn’t facing the same level of regulatory scrutiny as Binance.

In February, ADGM signed a memorandum of understanding with the Solana Foundation to advance the development of distributed ledger technology (DLT).

Related: Australian Tax Office seeks data from 1.2 million crypto exchange users: Report