Crypto.com receives MVP licence in Dubai
Crypto.com has received the Minimal Viable Product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA).
The MVP licence means that Crypto.com can offer a range of virtual asset related services to retail and institutional investors in Dubai within its internationally benchmarked legislative framework for virtual asset service providers (VASPs).
Dubai’s Virtual Asset Regulatory Authority (VARA) issued the operating license to Crypto.com after reportedly meeting all of the operational, technical, and security requirements outlined by the local regulators.
The milestone comes nearly nine months after Crypto.com has secured its preliminary authorization to establish a crypto-asset business, paving the way for it to begin operations within the country. Before that, it was granted an “in-principle” decision, which was the first stage of the full authorization process whereby the applicant needs to satisfy on one or more requirements in order to obtain a license.
“We are pleased to welcome Crypto.com to the MVP Programme preparatory phase,” said Henson Orser, Chief Executive Officer of VARA. “VARA’s regulatory framework will be instrumental in creating and managing a unique, resilient and securely future-proofed ecosystem that delivers a sustainable and thriving global best-in-class VA market with secure cross-border interoperability. As such, participation from credible players like Crypto.com will further our mission of delivering a progressive and future-focused regulatory framework”.
“This achievement is the next significant step for Crypto.com in an incredibly important market for our business and industry,” said Kris Marszalek, CEO of Crypto.com. “With the MVP preparatory license, we look forward to continuing to work with regulators in providing customers the most comprehensive and secure crypto experience.”
Back in June 2022, Crypto.com was among the first crypto platforms to receive Dubai’s virtual asset exchange (VAX) license soon after the regulators signed off the virtual assets law and established the Dubai VARA.
The provisional approval allowed the exchange to conduct a spectrum of virtual assets business under the initial regulatory phase of VARA, which serves as the single custodial entity mandated to license and govern crypto activities in Dubai. This includes offering exchange products and services to pre-qualified investors and professional financial service providers under strict oversight and mandatory FATF compliance controls.
With the transition to an MVP approval, Crypto.com can open client money accounts with a domestic bank and provide various services to qualified customers. The exchange has been approved to deploy conversion between virtual assets and fiat currencies, as well as crypto payments and remittance services. In addition, Crypto.com can also act as a clearing house, operate tokens marketplace, and provide custodial services across the region.
Against the backdrop of a crashing market and burned investors, Dubai has recently sealed a landmark rulebook that governs how the Emirate will regulate cryptocurrency activities.
The new rules create a legal framework for crypto aimed at protecting investors and designing much-warranted international standards for the industry governance. In addition, the VARA now has enforcement powers in the Dubai’s special development and free zones with the exception of the Dubai International Financial Centre.