A Dubai-based gold investment and trading firm has become the first company in the Middle East to receive a government-backed cryptocurrency trading license.
Dubai gold trader Regal RA DMCC has received a trading license by the Dubai Multi Commodities Centre (DMCC), allowing the company store cryptocurrencies like Bitcoin, Ethereum and other altcoins in a “deep cold storage vault” located in Almas Tower, Dubai. The building houses the headquarters of the DMCC, a major global interconnected Free Zone and hub for commodities trading.
“DMCC is the only Free Zone in the Middle East to have a government-issued license to trade in crypto-commodities and offers unparalleled full market value insurance on such investments,” said Gerhard Schubert, Chairman of the Board for Regal Assets DMCC.
In an announcement, the DMCC adds the offline storage of all its cryptocurrencies will be placed alongside the company’s stock of physical gold in a vault that the company claims “is one of the most secure precious metal facilities in the world.” Further, all physical storage devise of the cryptocurrencies will be fully insured against theft, hacking or any natural disasters, the DMCC said.
Amid a spate of major hacks of cryptocurrency exchanges, reluctant investors who hesitate to store their crypto holdings in online wallets and exchanges will prefer Regal RA’s offline solution, contends Regal Assets’ chief executive Tyler Gallagher.
“We have developed what we believe is the number one most secure way of investing in Bitcoin, Ethereum and other crypto-commodities.”
The company contends its security structure will see offline keys printed within a secure environment on a “specialized wallet and placed in deep clod storage in the DMCC vault.” With its trading license, Regal RA adds it will enable customers to purchase or sell cryptocurrencies at any time.
Regal RA DMCC operates as a subsidiary of alternative assets firm Regal Assets, the latter holding a presence in the UAE, Canada and the United States and headquartered in Texas. The company is also working toward developing a fully compliant and regulated cryptocurrency trading platform online, according to Ksenia Kiseleva, manager of the company’s Dubai office. Additionally, Regal will also apply for cryptocurrency trading licenses in other countries around the world, she revealed.
The company’s announcement within days of Abu Dhabi’s international financial center considering its own regulatory framework for the cryptocurrency sector, a move that could see the financial zone prove a friendly jurisdiction for cryptocurrency usage in trading and payments.
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Last modified: May 20, 2020 9:05 PM UTC