Crypto.com Receives MVP Preparatory License from Dubai Regulator
Crypto.com has announced that it has received a preparatory Minimum Viable Product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA).
This operating license in the preparatory phase came after the exchange received preliminary approval from the regulator in Dubai last year. In the preparatory phase, the MVP license allows the exchange to meet the conditions for operating within the stipulated VARA rules. The rules outline that no business can conduct virtual asset activities in the form of promotions, offers or appear to do so in Dubai unless authorized and licensed by VARA for such activity.
Established in March 2022, Dubai’s VARA is responsible for regulating, monitoring and supervising virtual assets and virtual asset activities in all zones across the Emirate of Dubai, including special development zones and free zones, but excluding the Dubai International Financial Centre.
The MVP phase in its preparatory phase allows approved licensees to fulfill all prerequisites required to conduct MVP market operations within the VARA regime. Once the license is operational, Crypto.com will be allowed to offer spot and derivative instruments of virtual assets. The offers may include exchange services, brokerage, trading with margins or leverage, and OTC offers around settlement for institutional investors.
According to the announcement, Crypto.com received the MVP preparatory license after a thorough review of various aspects of the exchange firm. These aspects include key personnel, governance procedures, anti-money laundering/countering the financing of terrorism (AML/CFT), know your customer (KYC) policies and procedures, ultimate beneficial owner (UBO) policies and procedures, compliance practices, and cross-border security measures.
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VARA CEO Henson Orser explained that VARA’s regulatory approach will be beneficial in forming a robust and resilient ecosystem that will provide a superior virtual asset market with secure international operations. He concluded that including companies like Crypto.com would further their mission to establish a progressive, forward-looking regulatory framework.
Recently, Crypto.com has expanded its presence globally. The exchange is authorized and licensed in most major markets, including the UK, France, Italy and several others. It also obtained a payment institution license in Brazil.
Previously, Binance received the MVP license as the exchange has changed its operational strategies and secured more regulatory licenses.
