Nick Philpott, co-founder of Zodia Markets, commended Abu Dhabi’s crypto regulations, highlighting the “remarkable” level of cooperation with regulatory authorities in the region. He contrasted this positive experience with the slower and more complex regulatory environment in the UK, where delays in registration with the Financial Conduct Authority were common. Similarly, Ireland’s central bank also had a cautious approach, resulting in a relatively low number of approved entities.
Philpott pointed out that the delays in the UK were attributed to the high volume of applications, many of which lacked quality, and the resource constraints faced by the Financial Conduct Authority in processing these applications. He acknowledged the challenge faced by regulators in retaining experienced staff, as the private sector often offers more attractive opportunities. Philpott suggested that higher compensation for regulators could be a potential solution to this issue.
Contrary to the slow processes in the UK and Ireland, Abu Dhabi’s Financial Services Regulatory Authority (FSRA) demonstrated a high level of responsiveness. Philpott praised their prompt communication and proactive approach, noting how Zodia’s licensing process was initiated within two weeks of initial contact. The co-founder described the overall experience with FSRA as “very engaging” and highlighted their knowledge and open collaboration on unusual topics.
Zodia Markets began its regional search in October 2021, identifying Abu Dhabi Global Markets (ADGM) as a regulator experienced in overseeing certain counterparties, including mid-chains. With Dubai’s establishment of the Virtual Assets Regulatory Authority (VARA), Philpott acknowledged the importance of establishing a physical presence within the Emirate. He discussed the potential of combining Standard Chartered’s foreign exchange with crypto to provide services to institutional clients in the UAE.
Philpott recently moved to Abu Dhabi from the UK to assume the role of Head of Partnerships at Zodia Markets. He previously held various positions at Standard Chartered for about 16 years. In his new role, Philpott will work alongside Zodia’s existing team in the UAE, including chief risk officer Mark Matthews, chief technology officer Giovanni Miano, and Ayad Butt, who leads sales and trading in the Africa and Middle East regions. Philpott also noted the extensive construction activity in Abu Dhabi as a sign of the city’s ongoing development and growth potential.
