In a strategic move to solidify its presence in the Middle East, Crypto.com’s Dubai entity has been granted a Virtual Assets Service Provider (VASP) license by Dubai’s regulator, pending operational approval from the Virtual Assets Regulatory Authority (VARA). The license positions Crypto.com to offer a range of services, including exchange, broker-dealer, and lending and borrowing, to both retail and institutional investors in the region.
License Approval and Operational Scope
The VASP license, once fully approved by VARA, will empower Crypto.com’s local business, CRO DAX Middle East FZE, to provide comprehensive crypto services. The scope of offerings encompasses exchange services for trading digital assets, broker-dealer services for facilitating transactions, and lending and borrowing services tailored to meet the diverse needs of investors in the rapidly evolving crypto landscape.
Crypto.com’s CEO, Kris Marszalek, expressed anticipation in contributing to Dubai’s crypto industry and acknowledged the city’s proactive stance in designing effective regulations. This move aligns with Crypto.com’s earlier decision to designate Dubai as its Middle East and North Africa hub in March 2022, highlighting the region’s strategic importance in the company’s global expansion strategy.
![Crypto.com secures Dubai crypto license image 75](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/11/image-75.png?resize=1024%2C621&ssl=1)
![Crypto.com secures Dubai crypto license image 75](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/11/image-75.png?resize=1024%2C621&ssl=1)
Regulatory Landscape and Dubai’s Appeal
Against the backdrop of heightened regulatory scrutiny in the United States, Dubai has emerged as a preferred destination for crypto businesses seeking regulatory clarity. The city’s clear regulatory framework, coupled with a crypto-friendly environment, has attracted several firms looking to establish themselves in the Middle East. The approval of Crypto.com’s VASP license further underscores Dubai’s standing as an emerging digital assets hub in the region.
The trend of crypto businesses seeking refuge in Dubai from regulatory uncertainties in other jurisdictions has been gaining momentum. Binance Dubai General Manager, Alex Chehad, emphasized the clarity offered by Dubai and the United Arab Emirates compared to the U.S. regulatory landscape. This clarity, he noted, has facilitated the establishment of permanent headquarters for major companies like Binance in the region.
The approval of Crypto.com’s VASP license in Dubai is not only a significant milestone for the company but also a testament to the growing global influence of the crypto industry. As more regulatory frameworks take shape in various parts of the world, the decisions of major players to establish themselves in crypto-friendly jurisdictions like Dubai are likely to shape the industry’s future landscape.
Crypto.com’s latest regulatory achievement in Dubai positions the company for expanded operations and services in the Middle East. The VASP license not only demonstrates the commitment of major crypto players to compliance but also highlights the pivotal role that jurisdictions like Dubai play in fostering innovation and growth in the dynamic world of digital assets. As regulatory landscapes continue to evolve, the decisions of companies to establish a presence in crypto-friendly environments will undoubtedly influence the global trajectory of the industry.
ALSO READ
- UAE’s federal financial regulator opens licensing applications for VASPs
- Backpack launches VASP-licensed crypto exchange in Dubai
- Crypto.com Granted Major Payment Institution License in Singapore