Crypto.com advances in Dubai by obtaining MVP Preparatory License
Crypto.com has announced on its website that it has advanced in Dubai by obtaining MVP Preparatory License from Dubai’s Virtual Asset Regulatory Authority. The responsibility of the authority is to draft a framework for crypto ventures to better operate within the region. Any kind of advancement under its framework is a huge step for a crypto venture to be able to offer its services.
After getting the provisional licence in June 2022, it will take a few months to get the Minimal Viable Product Preparatory Licence. Only Binance received the same license in September 2022. The next step for Crypto.com is to apply for an operational license. Once secured, Crypto.com will be able to offer a wide range of services like OTC offerings, brokerage, exchange services, and margin/leverage trading, to name a few.
Other crypto ventures on the list to secure the preparatory license are Huobi, OKX, Bybit, and Equity. These firms currently have provisional licenses.
What is likely to work well for them to advance to the next step are the points that worked for Crypto.com. According to Crypto.com’s announcement, areas studied by VARA were:
- KYC Policies
- Governance Procedures
- Key Personnel
- Procedures followed to obtain the license
- AML/CFT Capabilities
Kris Marszalek from Crypto.com has called this a significant step for the company, adding that Dubai is an important market for the business and the industry. The Chief Executive Officer of Crypto.com has said that they are now looking forward to working with the regulators to provide the best experience to their customers.
Henson Orser from VARA has welcomed Crypto.com to the MVP Programme Preparatory Phase. According to the chief executive officer of the regulatory agency, the framework will play a crucial role in securing the future and delivering sustainable results. The ultimate objective is to create the best VA market globally, with seamless cross-border interoperability.
Henson has acknowledged Crypto.com as a credible player and stated that the company will help VARA advance its mission by establishing a regulatory framework that is progressive and future-focused.
Virtual Asset Service Providers must go through the following stages with VARA to become fully operational in the region:
- Preparatory MVP License
- Operational MVP License
- Full Market Product License
VARA has been tasked with developing a framework that promotes Dubai as the global center for virtual assets. Dubai has lately announced its Dubai Blockchain Strategy and Dubai Metaverse Plan. The goal is to establish Dubai among the top 10 metaverse economies and make it a global center for the sector.
Crypto.com, founded in 2016, is a Singapore firm with over 90 cryptocurrencies listed on the platform. It is operational in 90+ countries, and a look at our Crypto.com review highlights that while there is no deposit fee, the minimum deposit could vary based on currencies and the countries in which it operates.
More crypto ventures are looking to enter Dubai and seek licenses to operate in the region. Binance and Crypto.com are closer to fully operating, with others making advancements at their own pace.
