cryptonews.com
Crypto.com announced Tuesday that its Dubai-based entity achieved full operational approval from the Virtual Assets Regulatory Authority (VARA). It will commence operational services by catering to institutional investors.
It follows Crypto.com satisfying VARA’s pre-operational requirements in Nov. 2023. Notably, it represents the first instance of a global crypto exchange being authorized to operate with fiat currency within the United Arab Emirates.
Crypto.com’s Dubai-based branch, CRO DAX Middle East, facilitates spot trading activities and brokerage services for staking. It also provides additional over-the-counter (OTC) offerings related to settlements within designated markets.
Additionally, Crypto.com has planned further product launch initiatives including the Crypto.com App and other retail-focused ones.
We're excited to announce our full operational approval from Dubai’s Virtual Assets Regulatory Authority 🇦🇪
Crypto․com Exchange will be available for institutional investors as our first launch in the region 🙌 pic.twitter.com/6ZhHDdzPcT
— Crypto.com (@cryptocom) April 9, 2024
Exchange Targets Institutional Investors
Crypto.com’s full license signifies the completion of VARA’s four-stage process. The initial stage grants a provisional permit and preparatory licenses for a minimal viable product (MVP). The process culminates in a full market product (FMP) license. Upon obtaining full operational status under VARA regulations, companies can focus on serving institutional and qualified investors.
“Launching with our world-class Crypto.com Exchange institutional services will be fundamental to our continued growth and success in such a key market for our company,” said Crypto.com COO Eric Anziani.
Low Taxes, Business-Friendly Regulations Attract Crypto Firms to UAE
The UAE has emerged as a jurisdiction fostering crypto activity in recent years. This can be attributed to the nation’s evolving regulatory framework. In 2022, Dubai implemented a novel regulatory structure aiming to position the Emirate as a global center for crypto operations.
This framework seeks to provide transparency and security for both issuers of digital assets and service providers. Consequently, several crypto businesses relocated to the UAE, drawn to its low-tax environment and regulations conducive to business. This trend is particularly pronounced given the stricter stance US regulators have adopted toward crypto firms.
Later this month, Dubai will host a gathering of industry veterans. This assembly aims to foster consensus among web3 stakeholders to establish efforts between decentralized projects and centralized exchanges.