The cryptocurrency exchange Crypto.com said on Tuesday that it has been granted a license to conduct specific virtual asset service operations in Dubai.
The licence has been given to its Dubai-based company, CRO DAX Middle East FZE, which in March was given preliminary approval by Dubai’s Virtual Assets Regulatory Authority (VARA) for a minimal viable product (MVP).
A provisional permit, a preparatory licence, and an operating licence are the three steps involved in obtaining a full licence. The third stage of the process is currently being completed by Crypto.com, but before it can start operations, it must meet all localization requirements and conditions.
After that, the exchange will receive permission to begin operations in order to offer “lending and borrowing services, management and investment services, broker-dealer services, and exchange services.” The Singapore-based exchange won regulatory victories in the Netherlands, the United Kingdom, France, and Brazil after completing its licencing process in Singapore in June. But it has also experienced staff reductions and had trouble keeping fiat on-ramps operational during the most recent banking crisis.
Crypto companies operating in Dubai will need to obtain authorization and necessary licences by February 2023. Recently, Laser Digital, the financial services behemoth Nomura’s digital asset subsidiary, was granted an operating permit.
“It is an incredible honour to be one of the first crypto exchanges to be granted a Virtual Asset Service Provider Licence by VARA, and it further proves our company’s commitment to security and compliance,” said Kris Marszalek, CEO of Crypto.com