Bithumb will open a cryptocurrency exchange in the United Arba Emirates (UAE) through a joint venture. It is to become a government-licensed exchange.

Bithumb Monday announced its signing of the memorandum of understanding with UAE’s N-VELOP for a joint venture to establish a cryptocurrency exchange.

The two sides said they would establish UAE’s first fiat cryptocurrency exchange. Late last year, the UAE government unveiled its plan to regulate cryptocurrencies and issue a license for cryptocurrency exchanges.

N-VELOP’s business focus is to do blockchain business in the Middle East and North American. It has reportedly been partnering with the UAE government for the digital conversion project.

Bithumb is also seeking to explore the business possibility in Saudi Arabia, Bahrain, and the other oil-producing Gulf Cooperation Council countries.

Last year, Bithumb signed an agreement with the U.S. fintech firm SERIES One to establish a security-type token exchange. It has been in talks with Russian companies for partnership.