Crypto.com announced it has obtained a minimal viable product (MVP) preparatory license from Dubai’s Virtual Asset Regulatory Authority (VARA).
This preparatory phase operations license came after the exchange obtained provisional approval from the Dubai regulator in 2022. In the preparatory stage, the MVP license allows the exchange to fulfill the conditions to operate within set VARA rules. The rules outline that no company may carry out, or appear to, any virtual asset activity through promotions and offers in Dubai unless it is authorized and licensed by VARA.
Dubai’s VARA was established in March 2022 and is in charge of regulating, supervising and overseeing 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.
In its preparatory stage, the MVP phase allows approved licensees to fulfill all pre-conditions required to undertake MVP market operations under the VARA regime. Once the license is operational, Crypto.com can offer spot and derivatives instruments of virtual assets. The offerings can include exchange services, brokerage, margin or leverage trading and over-the-counter offerings around settlements for institutional investors.
According to the announcement, Crypto.com was granted the MVP preparatory license following a thorough review of the exchange. The review included key personnel, governance procedures, Anti-Money Laundering and Countering the Financing of Terrorism capabilities, Know Your Customer policies and procedures, ultimate beneficial owner policies and procedures, compliance practices, and cross-border safety measures.
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VARA CEO Henson Orser explained that VARA’s regulatory approach would 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 such as Crypto.com would advance its mission of establishing a progressive, forward-thinking regulatory framework.
Recently, Crypto.com has been expanding its presence globally. The exchange is authorized and licensed in most major markets, including the United Kingdom, France, Italy and several others. It also received a payment institution license in Brazil.
Earlier, Binance gained an MVP license as the exchange changed its operational strategies and secured several regulatory licenses.