Key takeaways:
- The Virtual Assets Regulatory Authority of Dubai granted the company a Preparatory License.
- In accordance with legal requirements, Crypto.com intends to offer a wide variety of institutional services.
Singapore-based crypto platform Crypto.com reported that the Dubai Virtual Asset Regulatory Authority (VARA) had granted it a minimal viable product (MVP) preliminary authorization.
After receiving provisional permission from the Dubai regulator in 2022, the exchange was granted this operations license for the preliminary period. The MVP license enables the exchange to meet the requirements to function in accordance with established VARA rules during the preparatory phase. According to the regulations, no business may engage in, or appear to engage in, any virtual asset activity through promos and offers in Dubai unless it has obtained a license and authorization from VARA.
With the exception of the Dubai International Financial Centre, all zones in the Emirate of Dubai, including Special Development Zones and Free Zones, are subject to regulation, supervision, and oversight by Dubai’s VARA, which was created in March 2022.
The three steps of the MVP license registration process are a provisional permit, a license for preparation, and an operating license. With Crypto.com, the second stage of the process has started.
During the MVP Phase’s initial preparation phase, authorized licensees can complete all prerequisites for starting MVP market activities under the VARA Regime. Crypto.com will be able to provide spot and derivatives instruments for virtual assets once the license is active. Exchange services, brokerage, margin or leverage dealing, and Over-the-counter (OTC) offerings centered around settlements for big investors can all be included in the offerings.
After a careful examination of many different parts of the exchange company, Crypto.com was awarded the MVP preparatory license, according to the announcement. The announcement stated:
“Once licensed to be operational, Crypto.com will be able to extend its approved suite of duly regulated virtual assets activities spanning a range of crypto exchange services (spot and derivatives), brokerage, margin/leverage trading, and OTC offerings around settlements for institutional investors,”
VARA CEO Henson Orser states that the organization’s regulatory strategy will help create a strong and resilient ecosystem offering a superior virtual asset market with safe global operations. He concluded that including organizations like Crypto.com would help them in their goal of creating a progressive, futuristic regulatory framework.
Over the past few months, Crypto.com has experienced a range of lows and highs, including a banned advertisement in the UK, staff reductions, and challenges keeping fiat on-ramps open in the face of the present banking crisis.
