KuCoin UAE Deal Signals Gulf Crypto Infrastructure Push

The UAE's Virtual Assets Regulatory Authority has issued more than 30 licenses since 2022. The Abu Dhabi Global Market has approved several crypto fund managers. The partnership adds KuCoin's name to that list of regulated entities, with the alliance expected to file for a VARA license for its shared infrastructure platform.

The consortium's goal is to create a common infrastructure layer that reduces the cost for each firm to manage custody and settlement. That approach mirrors the model used by the Dubai Gold and Commodities Exchange, which offers shared clearing and settlement for its members.

KuCoin has faced regulatory scrutiny in the US and UK, and the UAE partnership offers a licensed path to institutional business. The exchange's compliance team has been expanding its presence in the region, according to a person familiar with the matter.

The partnership comes at a time when the UAE is competing with Singapore and Hong Kong for crypto capital. The country's regulatory clarity and tax-free status have attracted a range of firms, from exchanges to asset managers. The new alliance adds a shared infrastructure layer that could make the UAE even more attractive to institutions looking for a single point of entry into the region's digital-asset market.

The alliance's first project, a digital-asset custody framework, is scheduled for a pilot launch later this year, according to a person familiar with the plans. The timeline would put the Gulf ahead of most other regions in offering a unified institutional custody layer.