FTX Expansion Overseas & Stock Trading for FTX.US
Crypto exchange FTX has received the green light to operate an exchange and clearing house services in Dubai, United Arab Emirates, the firm announced today. FTX Exchange FZE, a subsidiary of FTX Europe, won approval to enter Dubai's Minimum Viable Product (MVP) program for virtual assets. The license comes from the jurisdiction's Virtual Asset Regulatory Authority (VARA), which Dubai created in March of this year to handle virtual asset regulation as it seeks to become a hub for the digital economy. It's an affiliated agency of the Dubai World Trade Center regulating crypto activity from custodians to asset managers.
"The MVP Phase, exclusive to select, responsible international players like FTX, will allow VARA to prudently structure guidelines and risk mitigation levers for secure commercial operations," said H.E. Helal Saeed Almarri, Director General of Dubai World Trade Centre Authority. FTX is the first virtual asset service provider to receive a license, according to the announcement. It enables FTX to operate its exchange and clearing house services, offering crypto derivatives products and trading services to qualified institutional investors across the region. It also includes licensure to operate its non-fungible token marketplace and custody services. FTX received partial approval in March, at which time it said it planned to anchor a regional headquarters in Dubai once it received full licensure. Exchange Binance has also been winding its way through the regulatory process, nabbing a limited license from VARA in April of this year.
The majority of trades on crypto exchange FTX US’s new stocks application have been of the fractional variety — leading the company to waive fees for such trades moving forward, the company told Blockworks. The US affiliate of crypto exchange FTX, which revealed plans to launch a commission-free stock trading platform in May, officially unveiled the app Wednesday. Several thousand people from a waitlist participated in its private beta stage in recent months, and on Wednesday it became available to residents in all 50 states, FTX US President Brett Harrison said in a tweet. FTX US is the US affiliate of crypto exchange FTX. The app launched with 970 tickers available to trade — including stocks, ETFs and American depository receipts — and plans to add thousands more in time. Ultimately, Harrison said, FTX US hopes to allow users to trade stock options.
Harrison declined to share the number of users or trading volume FTX Stocks booked in its first day, but noted that he was surprised to see the high amount of trades that represented less than one share of a stock. People are showing interest in trading $100 of Tesla stock, for example, Harrison noted, despite a share of Tesla being worth, as of Friday afternoon, nearly $900. That is clearly a very important part of the platform,” he said. “And, in fact … we’re going to make all trades underneath one share be free.” Excluding the free fractional shares trading, FTX Stocks will charge a fee representing 0.05% of the notional value of the trade, or 1 cent per share — whichever is lower — beginning Oct. 1. “The goal there is to have a fully transparent, very clearly well defined fee as opposed to a sort of hidden cost associated with payment for order flow,” Harrison said.
FTX continues to show why they are frontrunners within the cryptocurrency and blockchain space from Bahamas expansion, European markets, and getting approved in Dubai as well. They are building relationships with the governments and lawmakers around the world which will be needed to operate legally and fluently in all these countries after all the news coming to light about operations and risk.
