Dubai’s flourishing crypto landscape welcomes a significant development as Crypto.com’s Dubai entity secures a Virtual Assets Service Provider (VASP) license, pending operational approval from Dubai’s Virtual Assets Regulatory Authority (VARA). The license paves the way for Crypto.com’s local business, CRO DAX Middle East FZE, to offer a comprehensive suite of services, including exchange, broker-dealer, and lending and borrowing, catering to both retail and institutional investors.
The move aligns with Crypto.com’s strategic positioning, designating Dubai as its hub for the Middle East and North Africa since March 2022. The regulatory journey began with a provisional license in June 2022, followed by a minimal viable product (MVP) preparatory license in March of the current year.
Crypto.com CEO Kris Marszalek expressed anticipation about collaborating with regulators, emphasizing their commitment to contributing to Dubai’s crypto industry. He underscored Dubai’s role as a leading market, especially in crafting effective regulations, positioning the city as an attractive and regulated environment for crypto businesses.
Amidst regulatory uncertainties in the United States, Dubai has emerged as a favored destination for crypto enterprises seeking regulatory clarity. The crypto-friendly jurisdiction of Dubai, backed by a clear regulatory framework, has become an increasingly attractive choice for companies like Crypto.com and Binance. Binance Dubai General Manager Alex Chehad highlighted the regulatory transparency in Dubai and the United Arab Emirates, emphasizing how it facilitated the establishment of permanent headquarters for major companies in the region.
As Crypto.com awaits the final operational approval from VARA, the VASP license solidifies its commitment to compliance and positions the platform to provide a secure and regulated environment for crypto enthusiasts in the Middle East. Dubai’s ascent as a crypto hub continues, fueled by regulatory clarity and the strategic presence of leading crypto entities.