For most traders, centralized exchanges are a more convenient model than managing transactions and balances themselves as they would with a decentralized exchange. Regulated centralized exchanges have teams of cybersecurity experts to secure their virtual vaults, offering a level of security that individual investors generally can’t match. Centralized exchanges also have the added benefit of transparency while securing the trades and funds by acting as a Central Counterparty to each trade. Furthermore, they are far more prevalent and have had years to accumulate users, trust, liquidity, and cybersecurity expertise, along with developing a more robust and feature-rich user interface.
(Note: The above thought piece covers the wider VA industry, and may not be an activity that Arabian Bourse Limited (ABX) is looking to be licensed to undertake.
ABX has received in-principal approval from Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) and is currently in the process of obtaining an FSP. ABX aims to be the first of its kind fully regulated, virtual asset MTF and custodian in the region focused on institutional and retail investors.)