Crypto.com Inches Toward Full Digital Asset Business Operations In Dubai

Summary:

• Dubai’s crypto regulator approved an MPV Preparatory License for Crypto.com per a Monday update from the exchange.
• Monday’s announcement marks the second stage of Dubai’s three-stage crypto license regime.
• The crypto exchange previously bagged the regulatory nod to offer digital asset services in Italy, Singapore, and South Korea to name a few.

Singapore-based digital exchange Crypto.com stepped closer to servicing institutional clients and offering crypto exchange services in Dubai, a Monday update from the crypto exchange said.

The digital asset company was awarded a minimal viable product (MVP) Preparatory License by Dubai’s crypto regulatory body, the Virtual Assets Regulatory Authority (VARA) set up in March 2022 to oversee Dubai’s blockchain and digital asset industry.

According to reports, the Preparatory License marks stage two of a three-stage MVP licensing regime from VARA. The first stage awarded a provisional permit, Crypto.com bagged a preparatory license in the second stage, and the third stage will issue an operational license, per VARA’s licensing policy.

Dubai’s VARA published its Virtual Assets Regulations and Associated rulebooks or VA Framework for licensing crypto business. The policy mandates all digital asset businesses to obtain crypto licenses and regulatory approval before starting operations as Dubai joined the race to position itself as a global hub for crypto innovation.

After successfully passing through the final stage, VARA will issue an operational license to crypto.com and allow the company to offer crypto exchange services to deep-pocket investors and institutional clients in Dubai.

The MVP Phase in its preparatory stage allows for approved licensees to fulfill all pre-conditions required to undertake MVP market operations within the VARA Regime. 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. 

Regulatory Highs For Crypto.com

Indeed, the crypto exchange has secured nods of approval from several regulatory bodies across the globe. Regulators from Brazil, France, Italy, Singapore, and South Korea to name a few have permitted Crypto.com to operate locally and service users.

In other jurisdictions, the company has faced regulatory hurdles as the broader crypto ecosystem bounces back from a tumultuous 2022. Crypto.com ads were banned in the UK as part of the Financial Conduct Authority’s (FCA) crackdown on crypto advertising.