After completing the preparatory stage and obtaining the operating license in Dubai, Crypto.com plans to provide a wide range of institutional services in accordance with regulatory requirements.
Crypto.com has announced its receipt of a Minimum Viable Product (MVP) Preliminary License from Dubai’s Virtual Asset Regulatory Authority (VARA).
This preliminary phase operating license came after the exchange received preliminary approval from the regulator in Dubai last year. In the preliminary stage, the MVP license allows the exchange to meet the conditions to operate within the established VARA rules. The rules outline that no company can conduct any virtual activity through promotions, offers or appear to do so in Dubai unless it is authorized and licensed by VARA for such activity.
VARA of Dubai was established in March 2022 and is responsible for the regulation, inspection and supervision of virtual assets and virtual assets in all zones throughout the Emirate of Dubai, including special development zones and free zones, but the Dubai International Financial Center excluded.
The MVP phase in its preliminary stage enables approved licensees to meet all the prerequisites required to undertake MVP market operations within the VARA regime. Once the license takes effect, Crypto.com will be allowed to offer spot and derivative instruments of virtual assets. The offerings may include exchange services, brokerage, margin or leveraged trading, and over-the-counter (OTC) offerings around settlements for institutional investors.
According to the announcement, Crypto.com received the MVP preparatory license after a thorough review of various aspects of the exchange company. These aspects include key personnel, administrative procedures, Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT), Know Your Customer (KYC) policies and procedures, Ultimate Beneficial Owner (UBO) policies and procedures, compliance practices and cross-border security measures.
Related: Dubai to Abu Dhabi: How NFTs are being used in the UAE
VARA CEO Henson Orser explained that VARA’s regulatory approach will be useful in forming a robust and resilient ecosystem that will provide a superior virtual asset market with secure international operations. He concluded that including companies like Crypto.com would further their mission to establish a progressive, forward-thinking regulatory framework.
Recently, Crypto.com has expanded its presence globally. The exchange is authorized and licensed in most major markets, including the UK, France, Italy and several others. It also obtained a payment institution license in Brazil.
Previously, Binance received the MVP license as the exchange changed its operating strategies and obtained various regulatory licenses.
