Crypto exchange Crypto.com is stepping into Dubai with a preparatory license for the VARA.
Crypto.com received a nod from Dubai regulators after completing the preparatory groundwork to offer a comprehensive range of institutional services.
According to the announcement, Crypto.com was granted the minimal viable product (MVP) preparatory license following a thorough review of the crypto exchange by the Dubai Virtual Asset Regulatory Authority (VARA).
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The regulator conducted a full review of personnel, internal governance as well as the exchange’s procedures for countering Anti-Money Laundering (AML) and terrorism financing.
Furthermore, the regulator also gained insights into Crypto.com’s procedures and policies regarding Know Your Customer (KYC), ultimate beneficial owner, and cross-border safety measures.
The license allows Crypto.com to "fulfill all pre-conditions required to undertake MVP market operations" under the VARA regulations.
Once the license is operational, Crypto.com will be allowed to offer a full-suit of its exchange services. This includes brokerage, margin, or leverage trading and over-the-counter (OTC) offerings for its institutional investors.
This preparatory phase operations license came after Crypto.com had obtained provisional approval from the Dubai regulator in 2022.
According to Dubai regulatory rules, no company is allowed to carry out virtual asset activity through promotions and offers in Dubai unless it is authorized and licensed by VARA.
When talking about the license, Crypto.com CEO Kris Marszalek stated:
This achievement is the next significant step for Crypto.com in an incredibly important market for our business and industry. With the MVP preparatory license, we look forward to continuing to work with regulators in providing customers the most comprehensive and secure crypto experience.
VARA's CEO Henson Orser also celebrated the news claiming that Crypto.com will help Dubai's regulator to "further <their> mission of delivering a progressive and future-focused regulatory framework.”
At the beginning of February, VARA published guidelines for virtual asset service providers (VASPs) operating in the Emirates, dubbed "Virtual Asset and Related Activities Regulation 2023."
