The Abu Dhabi Global Market Grants Financial Services Permission to M2, a Virtual Asset Trading Platform

By Press Release, 26 August 2023

The Financial Services Regulatory Authority (FSRA) has officially granted the new virtual asset platform M2 a Financial Services Permission (FSP) license in the Abu Dhabi Global Market (ADGM), allowing it to run a multilateral trading facility and provide custody services to UAE citizens.

The authority to purchase, sell, and custody virtual assets for institutional and retail clients in the UAE is authorized by M2. With a long-term goal of establishing the highest standards of trust, security, and integrity in the developing virtual asset class, the platform has been built over the past year.

Stefan Kimmel, M2 CEO, said: "The M2 team is delighted to have received confirmation of the ADGM FSRA license as it represents the approval of one of the most sophisticated and respected regulators in the world. The process of obtaining the license is the first step on our journey and we will remain in close dialogue with ADGM to ensure transparency around the custody of client assets."

He added: "Over the past five years the ADGM regulatory framework has established clear rules for those operating in the virtual assets sector and M2 will uphold the highest standards to reflect their vision as the UAE continues to affirm its reputation as a global leader in this space."

Salem Al Darei, Chief Executive Officer of ADGM Authority, said: "We are delighted to welcome M2 to ADGM's international virtual asset community, further solidifying ADGM's position as a leading International Financial Centre and a catalyst for business expansion. At ADGM, our mission has always been centered around unlocking new growth opportunities and fostering investments in the virtual assets sector. This has been possible through the establishment of a robust and forward-looking regulatory framework for digital assets. By integrating companies like M2 into our ecosystem, we remain committed to enhancing Abu Dhabi's digital asset landscape and actively supporting the diversification of our thriving economy."

The executive leadership team behind M2 consists of seasoned professionals from the Fintech, cryptocurrency, and traditional financial sectors, who have worked for organizations including Goldman Sachs, JP Morgan, Deutsche Bank, PWC, IBM and Kraken. The M2 virtual asset trading platform and its governance protocols will mirror the rigorous standards adopted by the financial services industry while maintaining the innovative spirit of the fast-emerging cryptocurrency and blockchain sector.

Subject to regulatory approval, the M2 platform is scheduled to launch later this year, offering UAE virtual asset investors the opportunity to purchase market-leading virtual assets (BTC and ETH), and benefit from institutional-grade trading features in addition to having a secure on and off-ramp for fiat payments. Growing the M2 product offering beyond launch, the platform intends to increase the number of assets and services offered to include derivatives along with a market-leading yield product.

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