Crypto.com to Open a Crypto Exchange in DubaiJune 3, 2022
Crypto.com has received government approval to expand into Dubai, joining a long list of leading crypto exchanges that have received the go-ahead to create localized platforms in the region.
The Dubai Virtual Assets Regulatory Authority (VARA) first granted the Singapore-based exchange preliminary clearance for its Virtual Asset MVP License (VARA).
In March, the government established VARA, which oversees crypto trading and new product issuances. Three weeks after the launch, Crypto.com announced plans to open a regional office in Dubai.
According to reports, the company intends to provide full crypto exchange products and services, including ones oriented toward institutional investors.
Dubai passed its first law governing digital assets in February. The law forbids anyone in Dubai from engaging in digital asset transactions without obtaining permission from VARA, including establishing crypto exchanges and managing custodial systems.
For instance, all permitted crypto businesses must follow Dubai’s rigorous market model of testing, adjusting, and scaling. Initially, only pre-qualified investors and professional financial service providers would be able to get limited exchange products and services. What’s more, the markets are then monitored by VARA before being open to ordinary investors.
Indeed, Crypto.com’s operating license is conditional—that is, it will not be granted until it passes certain specified standards. VARA granted the corporation a conditional approval based on documentation demonstrating Crypto.com’s guarantee of compliance checks, subject to more due diligence.