Virtual asset platform M2 has secured a Financial Services Permission (FSP) license from the Abu Dhabi Global Market (ADGM), enabling it to operate a multilateral trading facility and offer custody services to UAE residents.
The ADGM's license allows M2 to offer institutional and retail clients in the UAE the ability to buy, sell and maintain custody virtual assets such as such as Bitcoin (BTC) and Ethereum (ETH), the regulator said in a statement.
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,” he added.
The M2 platform is scheduled to launch later this year, subject to regulatory approvals.
Growing the M2 product offering beyond launch, the platform intends to increase the number of assets and services offered to include derivatives along with a market leading yield product, ADGM said.
In November 2022, the world's biggest cryptocurrency exchange, Binance, received a FSP from the ADGM.
In July 2023, Rain ADGM also received a FSP from the ADGM. Rain ADGM's Bahrain-based affiliate, Rain Management, became the first licensed virtual assets service provider in the Middle East in 2019 and is regulated by the Central Bank of Bahrain.
(Writing by Seban Scaria firstname.lastname@example.org; editing by Daniel Luiz)