Crypto.com Secures Dubai VASP License to Expand Virtual Assets Platform

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by Alisa Davidson

Published: November 14, 2023 at 4:25 am Updated: November 14, 2023 at 4:26 am

by Victor Dey

Edited and fact-checked:
November 14, 2023 at 4:25 am

In Brief

Crypto.com has received a Virtual Assets Service Provider (VASP) license from Dubai’s Regulatory Authority VARA.

Crypto.com‘s Dubai entity has received a Virtual Assets Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA), with operational approval still pending. Upon receiving full approval from Dubai’s regulator, the local business CRO DAX Middle East FZE will be able to provide retail and institutional investors with exchange, broker-dealer, and lending and borrowing services.

In a statement, Kris Marszalek, CEO of Crypto.com expressed anticipation for collaborating with Dubai’s regulators to contribute to the local crypto industry, emphasizing the city’s role as a “leading market in designing effective regulation”.

In March 2022, the exchange selected Dubai as its strategic location for the Middle East and North Africa (MENA) hub. It obtained a provisional license from VARA in June 2022, followed by a preparatory licence for a minimal viable product (MVP) in March of this year.

Dubai Grows as a Preferred Crypto Regulatory Environment

Dubai and the United Arab Emirates maintain a transparent regulatory framework for crypto firms, facilitating the establishment of permanent headquarters for large companies in the region.

Recently, Backpack Exchange —- well-known for its comprehensive web3 wallet announced it has obtained the Virtual Asset Service Provider (VASP) license for Exchange Services from VARA.

VARA has played a crucial role in pioneering regulations for virtual assets. In 2023, it introduced an unprecedented regulatory framework specifically designed for the virtual asset realm. The issuance of VASP license is a testament to their commitment, empowering crypto ventures to provide exchange services to a diverse clientele.

This summer, crypto exchange Binance became the first-ever virtual asset exchange receiving an operational MVP licence in Dubai.

The Emirates continues to attract major cryptocurrency exchanges and businesses due to their progressive regulatory approaches. In the recent research from blockchain analysis firm Chainalysis, the MENA region is positioned as the fastest-growing cryptocurrency market in the world.

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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and engagement with scientific writing.

Alisa Davidson