The United Arab Emirates has established one of the most defined regulatory frameworks for crypto exchanges. Dubai’s Virtual Assets Regulatory Authority issues licenses, while Abu Dhabi’s Financial Services Regulatory Authority regulates platforms operating in the Abu Dhabi Global Market. The clarity has drawn international platforms seeking formal authorization rather than operating in regulatory gray zones.

Just last week, on February 12, 2026, perpetuals-focused trading platform Flipster joined the growing list, securing in-principle approval from VARA through its local entity, Flipster FZE. It’s the first big regulatory green light for the exchange in the UAE, paving the way for regulated spot trading to start with more products likely to follow once full licensing clears.

BeInCrypto spoke with Benjamin Grolimund, General Manager at Flipster FZE, to dig into the decision: why the UAE became Flipster’s debut regulated market, the internal efforts undertaken to strengthen compliance standards, and what this says about where the competitive landscape for exchanges is heading in 2026.

Building Within a Defined Framework

Securing in-principle approval signals Flipster’s commitment to building a long-term presence in the UAE, according to Grolimund. Indeed, the UAE’s regulatory clarity was central to the decision. 

Grolimund sees that rather than responding to crypto reactively, Dubai established a dedicated supervisory authority with defined expectations for operators. He told BeInCrypto:

“The UAE combines regulatory clarity with economic ambition. That clarity matters. Regulatory predictability is a competitive advantage, particularly for an exchange planning long-term expansion.”

Geography also factored into the equation. The UAE connects major financial centers across Asia and Europe, offering exchanges a regulated base from which to serve multiple markets. For a platform expanding beyond one region, that positioning carries operational advantages.

Grolimund added:

“There is also a long-term orientation to how digital infrastructure is being built in the Middle East. Digital assets are part of broader economic diversification efforts, not treated as a passing cycle. That environment supports sustainable growth rather than volatility-driven expansion.”

Institutionalizing Readiness

Progressing from in-principle approval toward full authorization required operational discipline beyond product expansion.

Preparing for supervised activity in the UAE meant formalizing governance structures, refining risk assessment methodologies, and clarifying reporting lines aligned with VARA’s expectations. Monitoring systems were enhanced, onboarding controls strengthened, and accountability mapped across product, engineering, legal, and compliance teams.

“Growth under supervision demands clarity of accountability,” Grolimund said.

In his view, operating in the UAE required embedding regulatory alignment into core processes rather than treating compliance as an external layer. Accountability structures were clarified, risk controls strengthened, and reporting frameworks aligned early in the process.

Flipster has also established a physical presence in Dubai, relocating talent from global offices and hiring locally. The license, he emphasized, is not being treated as a convenience structure.

“Some companies treat licensing as an expansion milestone. We see it as the starting point of building something durable.”

Performance Under Supervision

The in-principle approval allows Flipster FZE to move toward spot trading as its initial licensed activity in the UAE. As regulatory licensing becomes standard among global exchanges, the distinction increasingly lies in how platforms operate once supervision begins.

Flipster built its infrastructure for active traders, prioritizing deep liquidity and efficient execution across perpetual futures markets. Grolimund said entering a regulated jurisdiction does not change that foundation. It raises the standards around it.

“Entering a regulated market does not change our focus on performance,” he said. “It challenges us to maintain speed and product sharpness while operating with stronger governance.”

Rather than treating compliance as a separate layer, he described the objective as integrating governance into the operating core. Matching engines, liquidity systems, and risk controls must function within clearly defined escalation pathways and reporting structures.

“Speed without structure does not last,” Grolimund affirmed.

From Cycles to Structure

Looking at the larger picture, Grolimund said the UAE is expected to serve as a foundational regulated market within Flipster’s broader expansion strategy over the next several years. The immediate priority is progressing from in-principle approval to full authorization and sustaining operations under VARA’s oversight.

The move reflects a broader recalibration across the exchange sector. As structured regulatory regimes expand, licensing is becoming a baseline requirement rather than a differentiator. The distinction may lie in whether platforms can sustain liquidity and execution quality while operating under supervision.

“Our investment in the UAE reflects how we intend to approach every market we enter,” Grolimund said.

Machi Big Brother was also partially wrecked as ETH’s price dropped by $200.

It was another sharp drop for bitcoin earlier this morning when the asset plunged to its lowest level in over two weeks at under $64,500.

Given the extent and speed of the crash, the total value of wrecked positions skyrocketed within hours to almost $500 million. Within this timeframe, almost 140,000 traders were wrecked, according to data from CoinGlass. However, one case in particular raised a few eyebrows.

An unknown whale was wrecked for $61.51 million in the past day during BTC’s painful drop. The liquidation took place on HTX and involved the BTC/USDT trading pair.

Another whale that was hit during the dip was Machi Big Brother – the Taiwanese-American entrepreneur and former musician, whose real name is Jeffrey Huang.

Data from Lookonchain shows that he was partially liquidated on his ETH position. CryptoPotato reported a few days ago that his entire crypto portfolio had fallen below $1 million, posting a loss of around $28 million.

Although that amount has risen to over $28.8 million following the latest liquidation, he continues to build on his Ethereum longs, now holding 1,700 tokens, worth $3.2 million.

ETH’s price was rejected at $2,000 over the weekend and plunged to $1,850 for the first time since the February 6 crash, when it bottomed at $1,750.

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The market just crashed, and Machi(@machibigbrother) was partly liquidated again.

But he keeps adding to his $ETH long position.

He now holds 1,700 $ETH($3.21M), with a liquidation price of $1,818.74.

His total loss has passed $28.8M.https://t.co/P6lglcgpyo pic.twitter.com/t9cEDpOzQ1

— Lookonchain (@lookonchain) February 23, 2026

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Ethereum’s native token, Ether (ETH), is on track to test and potentially break the $1,500 support level in the coming days.

Key takeaways:

• Ethereum has entered the breakdown phase of its prevailing bearish continuation pattern.

• ETH price may decline below $1,500 by early March amid founder-led selling.

ETH bear pennant breakdown targets $1,475

On Monday, ETH’s price dropped by more than 5.60% to about $1,850 amid a broader de-risking sentiment led by nervousness surrounding tariffs.

In doing so, the biggest altcoin broke below the lower trendline of its prevailing bear pennant pattern, with rising volumes indicating traders’ conviction behind the breakdown move.

A bear pennant breakdown typically resolves when the price falls by as much as the previous downtrend’s height.

Applying the same principle to ETH’s charts would bring its downside target to $1,475, close to the psychological support level of $1,500, by the end of February or early March.

Related: Ethereum price: Classic chart pattern puts sub-$2K ETH in focus

The bulls must therefore reclaim the pennant’s lower trendline as support, followed by a continued rally above the 20-day exponential moving average (20-day EMA, the green line) at $2,085, which may invalidate the bearish outlook.

Vitalik Buterin will likely sell more ETH soon

Ethereum co-founder Vitalik Buterin’s planned ETH sales have not helped the bulls regain their footing in February.

On Jan. 30, Buterin said he would withdraw and sell 16,384 ETH via his Kanro entity to fund ecosystem work, open-source software and other long-term initiatives during an Ethereum Foundation “mild austerity” phase.

Since early February, onchain tracker Arkham Intelligence has flagged about 9,000 ETH sold in batches, with the pace picking up again over the past 48 hours after a 3,500 ETH withdrawal from Aave.

Vitalik Buterin “is selling ETH faster again,” said onchain monitoring resource, Lookonchain, on Monday.

Ethereum’s price has dropped 18.55% so far in February, aligning with Buterin’s ETH distribution. The overhang could grow if he liquidates the remaining ~7,350 ETH.

History shows how founder-linked supply, including Ethereum Foundation treasury transfers, can amplify bearish sentiment among traders.

For instance, the May 2021 35,000 ETH transfers (about $125 million at that time) preceded a 50% ETH price drop within weeks.

Later, the foundation transferred another 20,000 ETH ($95 million) to Kraken on Nov. 11, 2021, a move that, in hindsight, coincided with Ether’s price peaking near $4,700 before the next leg lower.

Such conditions further increase ETH’s odds of hitting its pennant target below $1,500 in the coming days.