Crypto.com has announced that it has been granted a minimal viable product (MVP) preparatory license from Dubai’s Virtual Asset Regulatory Authority (VARA). This follows its provisional approval in 2022 and means the exchange can now fulfill all conditions set by VARA to operate within the regulator’s terms. According to VARA’s rules, any company wishing to undertake virtual asset activities, such as promotional offers and deals, in Dubai must be authorized and licensed by the regulator. However, the MVP license from VARA allows Crypto.com to do precisely that.
Crypto.com and VARA’s regulatory approach
In March 2022, the Virtual Assets Regulatory Authority (VARA) was launched in Dubai to supervise, regulate, and oversee all virtual asset activities within the Emirate of Dubai, excluding the Dubai International Financial Centre. Currently in its preparatory stage (MVP phase), approved licensees may fulfill their pre-conditions necessary for operation under VARA’s regime. Once the license is operational, Crypto.com can provide spot and derivatives instruments of virtual assets with services such as exchange, brokerage, margin/leverage trading, and over-the-counter settlements for institutional investors.
After thoroughly reviewing the exchange, VARA CEO Henson Orser recently announced that Crypto.com had been granted the MVP preparatory license. The review included key personnel, governance procedures, Anti-Money Laundering and Countering the Financing of Terrorism capabilities, Know Your Customer policies, ultimate beneficial owner policies, compliance practices, and cross-border safety measures. In addition, Orser stated that VARA’s regulatory approach would aid in creating a safe, secure virtual asset market with international operations.
Moreover, he expressed his belief that partnering with Crypto.com will help to further the company’s mission of establishing an advanced and forward-thinking regulatory framework.
Recently, Crypto.com has been expanding its presence globally with multiple regulatory licenses and authorizations. The exchange is authorized in the United Kingdom, France, Italy, Brazil, and other major markets, having recently gained a payment institution license in Brazil. In addition to this, Binance also recently obtained an MVP license as it changed its operational strategies to adhere to regulatory standards.
