The Abu Dhabi Global Market has granted regulatory clearance to virtual asset trading platform Hayvn, as the FTZ plans to expand online asset trading options for investors.
As a regulated over-the-counter (OTC) trading and custody platform, Hayvn is now authorized to enter into investment agreements and custody of accepted virtual assets, the trading platform announced on Thursday. .
The company provides secure OTC trading and custody capabilities, allowing clients to trade virtual assets.
The regulatory approval “will further strengthen Hayvn’s positioning as the institutional leader in virtual assets within ADGM,” the company statement said.
“ADGM’s regulatory approval adds depth to our regulatory stack. We are a regulated company, operating in a low trust industry, ”said Christopher Flinos, co-founder and CEO of Hayvn.
“As virtual assets become more and more institutional, our regulatory framework provides the ideal platform to buy, sell and obtain custody of virtual assets. “
ADGM has three operational cryptocurrency exchanges and three more are in various stages of preparation for a smooth launch, Emmanuel Givanakis, chief executive of the financial center’s Financial Services Regulatory Authority, said in November.
In 2018, the FSRA launched a comprehensive virtual asset framework for virtual asset trading by businesses, including multilateral trading facilities, custodians and brokers. These regulations have been continuously refined to mitigate risk and make ADGM an attractive space for local, regional and international businesses.
ADGM regulatory approval adds depth to our regulatory stack
Christopher Flinos, Co-Founder and Managing Director, Hayvn
Investor appetite for digital tokens and cryptocurrencies has increased in the wake of the Covid-19 pandemic, as homebound users seek to invest their available money. At least half of UAE institutional investors surveyed by London-based Nickel Digital Asset Management this year said they plan to significantly increase their exposure to cryptocurrency assets by 2023.
The volatile nature of cryptocurrency trading and the crazy price swings in recent months have, however, angered regulators.
Central banks around the world are reluctant to approve cryptocurrencies due to a lack of underlying value and regulatory oversight. The Central Bank of the United Arab Emirates does not recognize cryptocurrencies as legal tender.
China, the world’s second-largest economy, has banned the mining and trading of Bitcoin and other digital currencies.
“Not only will this FSP allow us to attract institutional capital into virtual assets, but will also allow Hayvn to secure more funding opportunities and give us access to capital to further develop our business,” said Mr. Flinos.
Hayvn will soon begin accepting clients and subsequently launch operations in ADGM after obtaining approval from the FSRA, the statement said.
The most important factor in the virtual asset space is building trust, said Rensche Olivier, chief regulatory officer at Hayvn.
“We operate in an industry that lacks trust and regulation. Being a regulated company within ADGM helps establish the level of trust necessary to build trust in the new cryptocurrency market, ”said Olivier.
Update: December 24, 2021, 3:30 a.m.