Crypto.com, the popular cryptocurrency exchange, has achieved a significant milestone by securing a Virtual Assets Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA). This article explores the implications of this license and highlights the regulatory framework in Dubai that has made it a crypto-friendly jurisdiction.
Under its entity CRO DAX Middle East FZE, Crypto.com announced the acquisition of a partial VASP license, which grants permission for specific virtual asset services. To obtain the full VASP license, Crypto.com must fulfill certain conditions set by VARA. Once these conditions are met, the exchange will qualify for operational approval, enabling Crypto.com to provide regulated digital asset services.
The full operational approval is a significant achievement for Crypto.com, as it will allow the exchange to offer a range of regulated digital asset services, including exchange, broker-dealer, management and investment, and lending and borrowing services. This will empower Crypto.com to present its top-notch products to customers across permitted jurisdictions from Dubai.
Dubai has emerged as one of the leading crypto-friendly hubs in the world, attracting praise from numerous crypto-related firms operating within the region. Over the past months, the regulatory body in Dubai has granted operational licenses to several crypto exchanges and firms, solidifying its reputation as a crypto-friendly jurisdiction.
Comprehensive Regulatory Framework
Dubai’s regulatory framework for virtual asset service providers showcases a commitment to innovation while ensuring compliance and security. The Dubai Virtual Assets Regulatory Authority (VARA) has established comprehensive rulebooks and regulations for VASPs, creating a transparent and reliable environment for crypto firms to operate in.
Dubai stands out as a jurisdiction where regulators actively engage with the evolving crypto industry. Brad Garlinghouse, CEO of Ripple, has highlighted Dubai as a prime example of a city that promotes innovation and entrepreneurship through clear regulatory frameworks and policies. This engagement with the crypto industry has contributed to Dubai’s success as a global frontrunner in the digital asset space.
With the acquisition of the partial VASP license, Crypto.com is well on its way to obtaining full operational approval in Dubai. This enables the exchange to offer regulated digital asset services and showcase its dedication to security and compliance. The license not only bolsters Crypto.com’s reputation but also highlights the effectiveness of Dubai’s regulations in supporting adoption and innovation.
Crypto.com’s secured VASP license is a significant step towards regulatory compliance in the crypto industry. Dubai’s emergence as a crypto-friendly jurisdiction, with its comprehensive regulatory framework and commitment to innovation, paves the way for the growth and success of crypto firms operating within the region. As Crypto.com continues its journey towards obtaining full operational approval, it is positioned to provide regulated digital asset services to a global audience from its base in Dubai.