By
Bena Ilyas
April 23rd, 2024
The collaboration between Dubai and Crypto.com is anticipated to be beneficial for both parties as the UAE seeks to revolutionize its financial sector through cryptos.
Crypto.com, a leading global crypto exchange, announced today that it has received a full operational license from Dubai’s Virtual Assets Regulatory Authority (VARA). This is a huge milestone for Crypto.com as it became the first crypto exchange globally to have been approved to operate with fiat currency in the United Arab Emirates (UAE).
Crypto.com License Stirs Availability to Dubai Investors
A full operational license for Crypto.com from VARA permits businesses to serve institutional and qualified investors. As a result, Crypto.com is expected to provide a wide range of services including products for institutional investors.
Eric Anziani, Chief Operating Officer of Crypto.com commented on the approval, stating:
“Launching with our world-class Crypto.com Exchange institutional services will be fundamental to our continued growth and success in such a key market for our company.”
Crypto.com’s full operational license indicates its satisfactory completion of a four-step VARA process. The initial stage began in 2022 when the exchange was granted a provisional permit and preparatory licenses for a Minimal Viable Product (MVP). Subsequently, Crypto.com satisfied VARA’s pre-operational requirements in Nov. 2023.
This is a remarkable development for Crypto.com as it spreads its wings to the UAE. The company focuses on active growth and the expansion of its ecosystem. With over 50 million users globally, the crypto platform is one of the fastest-growing platforms in the industry.
Meanwhile, Crypto.com already has a Dubai office, CRO DAX Middle East, which facilitates spot trading activities and brokerage services for staking. Additionally, the office provides Over-The-Counter (OTC) trading connected to settlements within specific markets.
Looking ahead, Crypto.com said it has plans for additional product launch initiatives such as the Crypto.com App and others targeted at retailers. The full VARA license adds to Crypto.com’s license momentum. In December, Crypto.com bagged regulatory approval from the United Kingdom Financial Conduct Authority (FCA) to function as an Electronic Money Institution (EMI) in the country.
The exchange platform is also in the process of launching its retail trading services in South Korea after receiving regulatory approval under the Electronic Financial Transaction Act and as a Virtual Asset Service Provider (VASP) in August 2022.
Benefits for Dubai and Crypto.com
The collaboration between Dubai and Crypto.com is anticipated to be beneficial for both parties as the UAE seeks to revolutionize its financial sector through cryptos. VARA, established in March 2022, will play a critical role in developing a progressive legislative framework for Crypto.com.
This framework is intended to safeguard investors, set international governance standards, and support the idea of a borderless digital economy. By anchoring its operations in Dubai, Crypto.com is well positioned to capitalize on this growing market.
While many countries have been pessimistic and indifferent about the use of crypto, the UAE has been a hub for tech development and its population appears to be very welcoming to innovations.