Key takeaways :
- Crypto.com’s Singapore subsidiary, CRO DAX Middle East, obtains a VASP License from Dubai’s regulator.
- Dubai’s VARA grants the license, allowing Crypto.com’s Dubai exchange to engage in specific crypto services.
In a significant development, Crypto.com proudly announced that its Dubai entity, CRO DAX Middle East FZE, has been granted a Virtual Assets Service Provider (VASP) Licence for specified virtual asset service activities by Dubai’s Virtual Assets Regulatory Authority (VARA).
This regulatory milestone marks a key step in Crypto.com’s journey to offer a range of regulated digital asset services, solidifying Dubai‘s position as a leading global hub for the virtual asset sector.
The VASP Licence, although subject to specific conditions and localisation requirements defined by VARA, positions Crypto.com to commence operations upon receiving the operational approval notice from the regulator.
To attain the full VASP license, the exchange must meet the conditions set by VARA. Once achieved, Crypto.com will be authorized to offer regulated digital asset services such as exchange, broker-dealer, management and investment, and lending and borrowing services.
This regulatory nod aligns with Dubai’s ongoing efforts to establish itself as a prominent player in the virtual asset sector, excluding the Dubai International Financial Centre. The city’s commitment to crafting effective regulations for the cryptocurrency space highlights its role as a leading market, encouraging adoption and fostering innovation.
CEO Kris Marszalek expressed confidence in Dubai’s regulatory framework, emphasizing the city’s proactive approach to creating an environment that supports the growth of the cryptocurrency industry.
Upon receiving the license, Crypto.com aims to offer a comprehensive suite of services, including exchange, broker-dealer, and lending/borrowing.
The regulatory landscape in the United Arab Emirates has evolved to embrace crypto-friendly policies. In 2022, Dubai introduced a new regulatory framework designed to position the city as a global hub for cryptocurrency and blockchain activities.
The framework, aimed at providing clarity and security for digital asset issuers and service providers, has garnered support from industry players.
As regulatory uncertainties continue to impact crypto firms globally, Dubai has emerged as an attractive destination for businesses seeking legal clarity. The city’s commitment to fostering a crypto-friendly jurisdiction positions it as a burgeoning digital assets hub in the Middle East, attracting a growing number of industry participants.