In February, Dubai announced its first crypto regulation, making it illegal for anyone to deal with crypto assets without VARA approval.
One of the leading global exchanges, Crypto.com has announced that it has obtained provisional approval for its virtual asset license from the Dubai Virtual Assets Regulatory Authority (VARA). According to the report, the exchange passed an initial compliance check which gives them the legal right to operate crypto-related services in the region. It is expected that Crypto.com obtains its full operating license in the near term after VARA carries out due diligence and mandated requirements. The collaboration is expected to be a win-win for both parties as the country seeks to revolutionize its financial sector through cryptos.
“The United Arab Emirates is focused on developing a world-leading environment for innovative technology and collaboration, and we believe the cryptocurrencies, virtual assets, and blockchain will revolutionize the financial services sector,” said H.E. Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade.
In February, Dubai announced its first crypto regulation, making it illegal for anyone to deal with crypto assets without VARA approval. In addition, it requires that all crypto companies seeking to operate within the region incorporate Dubai.
A plan to create a regional outpost in Dubai has been made, with Crypto.com expected to provide a wide range of services including products for institutional investors.
Crypto.com co-founder and CEO Kris Marszalek express his excitement with the development so far.
“We are excited to provide more of our products and services in a market of great importance to our business, and one that is equally committed to regulation and compliance,” said Marszalek.
Last December, Dubai World Trade Centre Authority (DWTCA), established a crypto hub in the Dubai World Trade Center which saw the involvement of the likes of Binance Exchange. It is worth noting that FTX Europe and Binance have all obtained VARA’s Dubai-focused license to operate in the region.
In separate news, a leading regulated crypto exchange, FTX Trading Ltd, has announced that it has launched FTX Japan. This means the Japanese crypto community will directly access a variety of crypto products including spot trading supporting a wide range of cryptos. In addition, local customers will be able to make deposits and withdrawals of Japanese Yen.
According to Sam Bankman-Fried, CEO of FTX, the development will provide the grounds to directly work with Japanese regulators in a more “transparent, constructive and positive manner.” More importantly, this will give them a technological advantage over other exchanges.
“Japan is a highly regulated market with a potential market size of almost $1 trillion when it comes to cryptocurrency trading,” said Bankman-Fried.
The ongoing expansion is much contrary to the current market condition forcing other exchanges to reduce staff. The Gemini exchange is expected to reduce its employees by 10% while Coinbase Global Inc (NASDAQ: COIN) has decided to slow hiring.
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