Crypto.com has obtained approval from the authorities to expand in Dubai, joining a number of leading cryptocurrency exchanges that have been given the green light for this type of activity in the region.
The Singapore-based exchange can boast for the first time that it has received a Virtual Asset MVP license from the Dubai Virtual Assets Regulatory Authority (VARA).
In March, the Dubai government launched VARA, which oversees cryptocurrency transactions and issuances of new digital products.
Crypto.com shared plans to set up a regional facility in Dubai just three weeks after VARA was founded. The company plans to eventually provide residents of the region with a full suite of its cryptocurrency exchange products and services, including offerings aimed at institutional investors.
In February, Dubai prepared its first law regulating digital assets in detail. M.in, it has banned any Dubai resident from engaging in transactions related to digital assets without vara’s prior approval – including running cryptocurrency exchanges and creating custodial solutions.
The authorities also require that cryptocurrency companies that want to do business in the region have offices in Dubai, which is explained by a recent move Crypto.com, which has established its local headquarters there.
All approved cryptocurrency operators must operate within a strict market model. Initially, only limited exchange products and services can be provided to pre-approved investors and professional financial service providers. VARA monitors the market before deciding whether to open it up to retail investors.
So far, no regulated cryptocurrency exchange has offered a cryptocurrency-dirham trading pair. Apparently, Kraken will be the first such entity to do so in the near future.
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