Abu Dhabi authorises virtual asset company M2 to provide cryptocurrency services

The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) has authorised virtual asset firm M2 to conduct financial services as it establishes a multilateral trading facility in the capital of the United Arab Emirates.

In a statement, M2, headquartered in Abu Dhabi, disclosed that this regulatory approval paves the way for institutional and retail clients in the UAE to engage in the purchase, sale, and custody of virtual assets, including popular cryptocurrencies like Bitcoin and Ether.

The development of the M2 platform, set to launch later in 2023, has been a year-long process. The overarching goal is to instil the highest levels of trust, security, and integrity in the emerging virtual asset class. Once operational, the M2 platform will enable UAE users to acquire cryptocurrencies using fiat money and will offer access to derivatives and yield services. Although the platform is not yet active, the ADGM emphasised that M2 and other applicants underwent an in-principle approval (IPA) process, outlining conditions to fulfil before securing a Financial Services Permission (FSP).

Kimmel, a representative from M2, highlighted the rigorous nature of the ADGM's licensing application process, attributing it to the elevated standards set for full multilateral trading facility permits. However, he reassured that this stringent due diligence ensures the platform meets the criteria of security and transparency, instilling trust among UAE users. Kimmel also conveyed that the team is presently focused on the imminent launch of the M2 platform and its envisioned offerings. Furthermore, M2 has initiated licensing procedures in multiple European countries to become an exchange authorized in all jurisdictions.