Singapore-based Crypto.com’s subsidiary has secured a Virtual Assets Service Provider (VASP) License from Dubai’s regulator for specified crypto service activities.
CRO DAX Middle East, the exchange’s Dubai arm, received the license from Dubai’s Virtual Assets Regulatory Authority (VARA) on Tuesday. The license is subject to the firm “fully satisfying select conditions and localization requirements” set by VARA, the company said.
Further, the company “will be able to commence operations subject to operational approval notice from the regulator.”
Kris Marszalek, CEO of Crypto.com said that Dubai has been one of the jurisdictions supporting crypto adoption and innovation. The city-state’s regulator has been keen on “designing effective regulation for the crypto space,” he added.
“We are excited to showcase more of our industry-leading products to customers across permissible jurisdictions from Dubai, and look forward to working with regulators contributing to this thriving ecosystem.”
If the license is approved, Crypto.com will be able to offer a slew of services including exchange, broker-dealer, and lending/borrowing.
In March 2022, Crypto.com announced Dubai as its regional hub for the Middle East and North Africa region.
The news follows a week after VARA announced a new deadline for crypto-related businesses to clear licensing papers. The Gulf city-state’s crypto regulator said that companies have until November 17 to submit their licensing applications or missed notifications.
The United Arab Emirates has established itself as a crypto-friendly jurisdiction over the past months, given its regulatory architecture. In 2022, Dubai embraced a new regulatory framework to establish it as a global hub for cryptocurrency and blockchain activities.
The framework aims to provide clarity and security for digital asset issuers and service providers, gaining support from industry players.
Since then, several crypto businesses have migrated to the Emirate nation, due to its low-tax and business-friendly regulatory landscape. Especially at a time when the US regulators have taken a tough stance against crypto firms.
Crypto exchange Bybit announced the moving of its headquarters from Singapore to Dubai in March. Following this, Binance, the largest crypto exchange in the world, acquired its license to operate its regional business in Dubai.