Crypto.com Secures Full Operational Approval in Dubai
Dubai's Emergence as a Hub for Cryptocurrency Operations
Tuesday brought important news for the cryptocurrency industry. Crypto.com announced that its unit located in Dubai has obtained full operational approval from the Virtual Assets Regulatory Authority (VARA). This is a significant step that will enable the company to provide operational services for institutional investors.
This achievement was preceded by meeting the pre-operational requirements of VARA in November 2023. Importantly, this marks the first instance of authorization for a global cryptocurrency exchange to operate with fiat currency in the United Arab Emirates.
Crypto.com's Dubai-based branch, CRO DAX Middle East, will facilitate on-site trading activities and provide brokerage services for rates. Additionally, it will offer additional over-the-counter (OTC) offerings related to settlements in designated markets.
Further initiatives are planned for product introductions, including the Crypto.com app and others aimed at retail customers.
"Launching our institutional services on a global scale with the Crypto.com Exchange will be fundamental to our further growth and success in such a crucial market for our company," said Eric Anziani, COO of Crypto.com.
The full license granted to Crypto.com signifies the completion of VARA's four-stage process. Upon obtaining full operational status in accordance with VARA regulations, companies can focus on serving institutional and qualified investors.
The UAE has emerged as a jurisdiction supporting cryptocurrency activity in recent years, mainly due to the evolving legal framework of the country. In 2022, Dubai introduced an innovative regulatory structure aimed at positioning the Emirate as a global center for cryptocurrency operations.
This regulatory framework aims to provide transparency and security to both issuers of digital assets and service providers. As a result, several cryptocurrency firms have relocated to the UAE, attracted by low taxes and business-friendly regulations. This trend is particularly pronounced considering the more stringent approach adopted by US regulators towards cryptocurrency firms.
This month, Dubai will host a gathering of industry veterans aimed at promoting consensus among web3 stakeholders to establish cooperation between decentralized projects and centralized exchanges.
*This is not a financial advice
