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Switzerland-based digital asset bank Sygnum has received in-principle approval from the Abu Dhabi Global Markets Financial Services Regulatory Authority (FSRA) to operate in Abu Dhabi, United Arab Emirates (UAE).
The approval is to capitalize on the growing demand for cryptocurrencies in the region.
according to a report the whole countrythe new Middle East center will serve the local market with a crypto-native suite of digital asset banking, asset management, tokenization and B2B banking services, which will be regulated by the Swiss financial market regulator (Finma).
Mathias Imbach, Co-Founder and Group CEO of Sygnum, said: “Sygnum’s international expansion into the Abu Dhabi Crypto Hub gives us access to one of the largest pools of wealth and asset management in the world. It also opens up new opportunities for us, Allowing us to demonstrate the value of investing in cryptocurrencies with full trust in the local community, customers and partners.”
The report added that the company intends to seek to transfer blockchain firms to existing local crypto foundations and projects in the UAE, traditional institutional investors and high-net-worth individuals looking for trusted crypto assets through regulated partners exposure.
Currently, the company holds a Singapore capital market services license and provides services to approximately 1,500 clients around the world.
According to a statement from Sygnum, citing data from Statista, the UAE is fast becoming a global hub for cryptocurrencies, with the fifth-highest adoption rate globally at 34 percent and an annual transaction volume of more than $25 billion, the report noted.
Arvind RamamersiADGM Head of Markets said: “Sygnum is focused on promoting Abu Dhabi’s economic growth and maintaining the transparency and integrity of the market, and Sygnum’s presence in the region supports our continued commitment to Abu Dhabi and the UAE, attracting global companies which really makes it To be an international financial center where business can be conducted seamlessly.”
Recently, ADG announced the launch of the Abu Dhabi Crypto Hub, an interactive web-based platform that provides users with access to information and connections with existing virtual asset companies in the financial centre.
The report added that more than 5,400 companies are currently registered and licensed with ADGM, according to
Dhaher Al Mheiri, Chief Executive Officer, ADGM Registry.