Dubai Exchange Palmex Receives Regulatory Sandbox License

Markets 1 min, 49 sec READ

by Abhimanyu Krishnan

Dubai Cryptocurrency exchange Palmex has received a Regulatory Sandbox License. This marks a win for crypto enthusiasts in the region.

In a win for crypto enthusiasts in the Middle East, Palmex, a Dubai-based cryptocurrency exchange powered by ArabianChain Techonology, has been granted a regulatory sandbox license. 

Palmex becomes the first cryptocurrency exchange in the Middle East to receive this honor, giving the company a great headstart among competitors. The license will come into effect July 15 and follows much discussion and a very rigorous application process.

ArabianChain founder and CEO Mohammed Alsehli said,

When we launched Palmex, we did so with the conviction that regulatory status is fundamental to our future and the future of the industry. Our team has put in a lot of time and resources into working with regulators to ensure we are compliant, and we are excited to give our users an added level of confidence in using Palmex with this extra layer of legitimacy.

He also notes how the region is waiting for its turn to get into cryptocurrency,

The wild fluctuations and phenomenal surge in valuation of cryptocurrencies like Bitcoin have continued to drive exponential growth in demand to trade and issue digital assets. The region has been eagerly waiting for a regulator-approved platform that makes it possible for them to buy and sell in a secure environment.

Regulatory Sandbox Licenses are Valuable Testing Periods

Regulatory Sandbox Licenses (RSL) give business entities the permission to conduct operations in fields for which there exists no legal framework. Essentially, an authority grants the ability to test their services. It is considered a boon because it is a de facto approval of the service in question. 

In essence, a Sandbox License is the start of a longer process during which a service is allowed to operate while subject to strict regulations. Generally, what follows is an analysis of operations during the period of the RSL. It allows the entity to test and refine their service or product before being considered for a broader regulatory status.

The interest in crypto is picking up in the Middle East. There is even a conference that will be held in Dubai on June 25.