Cryptocurrency exchange Crypto.com has achieved a significant milestone in its global expansion plans after receiving a full operational license from Dubai's Virtual Assets Regulatory Authority (VARA). This approval makes Crypto.com's Dubai subsidiary, CRO DAX Middle East FZE, the first fully licensed entity authorized to handle both fiat and crypto currencies within the United Arab Emirates (UAE).
The development comes after Crypto.com underwent a multi-stage approval process established by VARA. In 2022, the exchange was granted a provisional permit, followed by preparatory licenses for a Minimal Viable Product (MVP). After successfully fulfilling the pre-operational requirements set by VARA in November 2023, Crypto.com has now been granted the full operational license, signifying its adherence to Dubai's regulatory framework for virtual assets.
Crypto.com's foray into the Dubai market aligns with the emirate's ambitions to position itself as a global hub for cryptocurrency and blockchain technology. Dubai has actively pursued the development of a comprehensive regulatory framework for virtual assets, with the establishment of VARA in 2022 being a key step in this direction. This regulatory framework provides clarity and security for both businesses and investors operating within the Dubai crypto ecosystem.
The license empowers Crypto.com to offer a wider range of services to its user base in the UAE and the broader Middle East region. The exchange can now cater to both retail and institutional investors, providing them with access to spot trading, staking, brokerage services, and other over-the-counter (OTC) offerings for settlements. Crypto.com has expressed its intent to leverage this license to expand its presence within Dubai and cater to the growing demand for cryptocurrency services in the region.
Analysts believe that Crypto.com's licensing approval by VARA is a significant development for the cryptocurrency industry as a whole. It serves as a validation of the growing acceptance and legitimacy of cryptocurrencies by regulatory bodies around the world. Furthermore, it paves the way for other major cryptocurrency exchanges to explore opportunities within the Dubai market, potentially leading to increased competition and innovation within the regional crypto landscape.
Granting a full operational license to a prominent cryptocurrency exchange like Crypto.com underscores Dubai's commitment to fostering a vibrant and well-regulated crypto ecosystem. This move is likely to attract further investments and talent to the region, potentially solidifying Dubai's position as a leading center for cryptocurrency innovation and adoption.