In the recent turn of events, Dubai has profiled itself as a crypto-ready country in the Middle East, captivating the interest of global crypto exchanges and fintech companies to flock to the region. On Tuesday, the Singaporean crypto exchange Crypto.com became Dubai’s new entrant after receiving the virtual assets service providers (VASP) license.
In a blog post dated November 14, Crypto.com confirmed it had met the pre-operation requirement set by the Virtual Assets Regulatory Authority (VARA). This exciting development aligns with Crypto.com pursuit to obtain the necessary licenses to operate as a compliant company in Dubai.
VARA Approves Crypto.com VASP License
In March, VARA approved the minimal viable product (MVP) submitted by Crypto.com Dubai office CRO DAX Middle East FZE. The approval of the MVP license inspired the crypto exchange to proceed with the other licensing processes in pursuit of gaining a considerable market share in the gulf country.
However, based on the Full Market Product (FMP) rules defined by VARA, Crypto.com must undergo three licensing stages. It implies that the crypto exchange must meet the compliance requirement for a provisional permit, preparatory and operating license.
The crypto exchange admitted that it has been working diligently to become the first company to obtain the VASP license in Dubai. The approval of the VASP license demonstrates Crypto.com’s commitment to complying with the VARA’s new rules for virtual assets.
In an earlier announcement, Crypto.com revealed plans to establish a regional hub in Dubai to support its operation in the Middle East and North Africa (MENA) zone. This development has inspired the crypto exchange to prioritize meeting the VARA requirement to expand its market presence in Dubai.
Crypto.com Seeks to Establish a Regional Hub in Dubai
Currently, the Singaporean crypto exchange has completed the second phase of the licensing process. In the final stage, the Crypto.com team will apply for an operating license to offer a wide range of crypto services, including brokerage and dealership crypto services, to retail and institutional clients.
In the announcement, the crypto exchange has revealed plans to proceed to the third licensing stage to expand its product offering by introducing exclusive investment, borrowing and lending services to the Dubai users.
At this stage, Crypto.com must meet the localized requirements to protect the consumer interest and uphold compliance. After securing the operating license, the crypto exchange will offer its product and services on the Crypto.com application or through the Dubai exchange.
Suitability of Dubai Crypto Market
An announcement conveyed by the chief executive of Crypto.com, Kris Marszalek, demonstrated that the crypto exchange was the first to secure a VASP license in Dubai. The CEO stated the approval of the VASP license demonstrated the commitment of Crypto.com to meet the existing security and compliance measures in the Middle East country.
Reflecting on the comprehensive framework for crypto assets, Marszalek admitted that Dubai has adopted a distinctive regulatory approach to supervise the digital sector. He added that the existing regulation on virtual assets seeks to promote innovation and concurrently push for mainstream adoption of crypto assets in the region.
The CEO pledged to work closely with the Dubai regulators to redefine the crypto industry in Middle East. Beyond this, the executive was pleased to state the approval of the VASP license allows Crypto.com to introduce its “industry-leading products and services” in Dubai.
Editorial credit: rafapress / Shutterstock.com
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