Alpaca has received in-principle approval from the Financial Services Regulatory Authority (FSRA) of ADGM, Abu Dhabi’s international financial centre.

The approval covers its local entity, Alpaca Clearing & Custody ME Ltd, also known as Alpaca Middle East.

This step forms part of the entity’s application for a Financial Services Permission.

If it obtains this permission, Alpaca Middle East plans to offer brokerage services and custody for virtual assets. Its exact scope will depend on what the FSRA approves.

An in-principle approval is not a full permission. According to Alpaca, its Middle East entity cannot carry out regulated activities in or from ADGM until it holds one.

Before that stage, firms must meet a set of FSRA conditions. These include a commercial licence, an office in ADGM and, where relevant, the required capital.

The company runs brokerage and clearing systems that financial firms and fintechs access through APIs.

With a base in Abu Dhabi, it aims to work more closely with partners in the region.

“Establishing a regulated presence in Abu Dhabi will allow us to work more closely with institutions in the region and connect them with Alpaca’s global brokerage infrastructure,”

said Hatem ElAraby, CEO at Alpaca Middle East.

In the Middle East, Alpaca already works with financial firms and fintech platforms. These partners cover digital investing, savings and brokerage.

Together with its local team, these ties give Alpaca a base for further investment in the region, the company said.

Beyond the UAE, Alpaca has a regulatory presence in the US, the UK, Europe, Japan, India and The Bahamas. Its partners are spread across more than 50 countries.

Featured image: Edited by Fintech News UAE, based on image by mrsiraphol via Magnific.