Abu Dhabi’s financial markets regulator, known as Abu Dhabi Global Market or ADGM, has approved a cryptocurrency exchange brokerage firm called DEX’s application to operate in the city.
DEX plans to launch its services in the next three months, and it will initially allow its customers to trade Bitcoin, Bitcoin Cash, Ethereum, and Litecoin before adding more cryptocurrencies. It will start with the four because they are the most popular in the crypto market and will thus likely be characterized by strong trading volumes.
The regulatory green light comes at a time when the cryptocurrency market is experiencing a surge in trading volumes, mainly due to the coronavirus. Traditional finance markets have been heavily affected by the economic downfall. Meanwhile, many investors shifted their focus on cryptocurrencies, that was not affected by the coronavirus. Some have even been using Bitcoin as a safe haven.
DEX’s approval by ADGM is a key milestone not only for the crypto exchange but also for customers, especially those that are looking for a regulated local platform that will protect their interests. DEX will operate a custody platform and also a Multilateral Trading Facility (MTF). The two will be provided to accredited and retail investors, institutions, and trading firms across the world.
“At DEX, our goal is to provide investors with a digital assets platform that delivers a best-in-class, fully regulated trading experience,” stated DEX CEO Leon Smith.
Taking advantage of market opportunities through a regulated approach
Smith also stated that his exchange aims to achieve those goals through strong security and transparency backed by regulation, which will be provided by ADGM. DEX has a strong foundation for launching a cryptocurrency exchange, thanks to the Abu Dhabi regulator. The exchange plans to launch a platform that will provide institutional-grade services that will match customers’ needs.
DEX also plans to launch the platform within the next few months to take advantage of the increased demand for crypto. The stay at home directives have influenced people to look for alternative ways of making money, and the cryptocurrency market presents such opportunities. There was a significant uptick in digital asset trading volumes in Q1 2020.