Singapore's QCP Secures In-Principle Approval From ADGM's FSRA For Digital Asset Activities

QCP, a leading global institutional digital assets company, has recently announced its receipt of In-Principle Approval (IPA) from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). This approval paves the way for QCP to conduct regulated activities within this strategic market. The move is driven by the anticipation that the Middle East will emerge as a key global hub for capital inflow into both traditional and digital assets. This development is a testament to QCP's commitment to becoming a fully regulated digital assets business.

The choice of ADGM as a base for expansion is strategic, given that the FSRA is recognized as the first global regulator to introduce a comprehensive regulatory framework specifically designed for virtual asset activities. This includes the regulation of exchanges, custodians, brokers, and other intermediaries. Since its inception in 2017, QCP has been at the forefront of the digital assets sector, establishing itself as one of the world's largest trading desks for digital asset derivatives and a provider of innovative trading solutions and structured strategies.

Recent findings by Ernst & Young highlight the significant growth potential in the crypto derivatives market, with a reported monthly volume of US$1.33 trillion as of September 2023. This volume is nearly four times that of the crypto spot market, with much of it currently situated outside the United States. Abu Dhabi and the broader UAE region are well-positioned to capitalize on this burgeoning market segment.

Arvind Ramamurthy, Chief of Market Development at ADGM, expressed his congratulations to QCP on receiving its IPA and welcomed them to Abu Dhabi’s international financial centre. He emphasized ADGM's enthusiasm for QCP's integration into its ecosystem, given their leading position in trading desk operations and digital asset capabilities.

Melvin Deng, CEO of QCP, remarked on the significance of the IPA in advancing their goal towards embracing greater regulation. He highlighted their commitment to meeting ADGM’s transparent and high standards of regulatory compliance. Deng also expressed pride in being the first Singaporean digital asset market maker and broker-dealer to establish a presence in Abu Dhabi, hoping to inspire other companies to explore opportunities in this dynamic market.

This strategic move by QCP not only underscores their dedication to regulatory compliance but also signals confidence in Abu Dhabi and the UAE as emerging leaders in the global digital assets landscape. As QCP integrates into ADGM's ecosystem, it sets a precedent for other international players considering entry into this promising market.

With inputs from WAM