In a notable development within the desert kingdom, the Dubai-based entity of Crypto.com has secured regulatory approval with the issuance of a Virtual Assets Service Provider (VASP) license by the city’s regulatory authority.
Pending operational clearance, this significant milestone underscores Crypto.com’s commitment to regulatory compliance and positions the platform as a prominent participant in meeting the escalating demand for virtual asset services within the dynamic economic landscape of Dubai.
According to the announcement, Crypto.com’s VASP license will enable them to provide a range of services to both individual and institutional investors. These services encompass exchange services, broker-dealer services, investment services, as well as lending and borrowing services.
Dubai Welcomes Crypto.com
Crypto.com has more than 80 million customers around the world. Its CEO, Kris Marszalek, highlights Dubai’s role as a pioneer in developing sensible rules for the cryptocurrency industry while also encouraging market uptake and innovation.
“It is an incredible honor to be one of the first crypto exchanges to be granted a Virtual Asset Service Provider Licence by VARA, and it further proves our company’s commitment to security and compliance,” Marszalek said.
https://t.co/vCNztATkNg is proud to announce that we have been granted a Virtual Asset Service Provider Licence pending operational approval from Dubai’s Virtual Assets Regulatory Authority, building on our position in the #UAE market.
Learn more:https://t.co/0anXDLsxTv pic.twitter.com/SgcqSTSqux
— Crypto.com (@cryptocom) November 14, 2023
In March 2022, the exchange designated Dubai as its regional gateway for the Middle East and North Africa. In June 2022, the entity obtained a preliminary license from Dubai’s Virtual Assets Regulatory Authority (VARA), which was subsequently followed by the acquisition of a preparatory license for a minimal viable product (MVP) in March of the current year.
Founded in March 2022, VARA is essential to controlling the emirate’s rapidly growing virtual asset market. This legal move supports the emirate’s aspirations to diversify its economy and is consistent with Dubai’s larger goal of establishing itself as a global center for the cryptocurrency sector.
The market cap of cryptocurrencies remained unchanged at $1.35 trillion. Chart: TradingView.com
Amidst escalating regulatory scrutiny and interventions against cryptocurrency firms in the United States, Dubai has emerged as a highly coveted destination for crypto businesses in search of legal clarity and a conducive regulatory environment.
This burgeoning trend sees numerous companies viewing Dubai as an attractive and crypto-friendly jurisdiction, positioning itself as a rising digital assets hub within the Middle East.
Dubai’s Emergence As A Cryptocurrency Oasis
Dubai, both a city and an emirate in the United Arab Emirates, is famous for its high-end retail establishments, cutting-edge buildings, and pulsating nightlife.
The appeal of Dubai lies not only in its progressive approach to cryptocurrency but also in its proactive efforts to establish a regulatory framework that provides the much-needed clarity and stability for businesses operating in the dynamic and rapidly evolving realm of digital assets.
According to Alex Chehad, general manager of Binance Dubai, the United Arab Emirates and Dubai have established a transparent legal structure for cryptocurrency companies to adhere to, unlike the United States. This has facilitated the establishment of permanent offices for major companies such as Binance in the region.
Featured image from Freepik