Dubai’s Virtual Asset Regulatory Authority has granted Crypto.com a preliminary license for a minimum viable product (MVP), according to Crypto.com (VARA).
Following getting preliminary approval from the Dubai administration in 2022, the exchange was issued this license for preparatory activity. During the preparatory phase, the MVP license enables the exchange to comply with the VARA operational standards. The rules specify that no company may engage in or seem to engage in any virtual asset activity in Dubai via advertising and promotions unless authorized and controlled by VARA.
The VARA of Dubai was founded in March 2022 and is responsible for regulating, monitoring, and managing virtual assets and virtual asset activity in all zones of the Emirate of Dubai, except the Dubai International Financial Centre.
During the preparatory phase of the VARA regime, the MVP phase enables approved licensees to satisfy all prerequisites for conducting MVP market operations. When the license is activated, Crypto.com will be allowed to provide spot and derivatives products for virtual assets. Institutional investors may be offered exchange services, brokerage, margin or leverage trading, and over-the-counter products focusing on settlements.
According to the statement, Crypto.com was granted the MVP provisional license after a comprehensive review of the exchange. Examined were key personnel, governance processes, anti-money laundering and counter-terrorism financing capabilities, Know Your Customer rules and procedures, ultimate beneficial owner policies and procedures, compliance practices, and cross-border security measures.
According to VARA’s chief executive officer, Henson Orser, VARA’s regulatory policy will be helpful in creating a robust and resilient ecosystem that will result in a more secure global market for virtual assets. He believed that incorporating companies such as Crypto.com would assist the organization in achieving its objective of developing a contemporary, forward-thinking regulatory framework.
Recently, Crypto.com has grown its global reach. The majority of significant markets, including as the United Kingdom, France, Italy, and others, have authorized and licensed the exchange. It also obtained a payment institution license in Brazil.
Binance got an MVP license in the past after modifying its operational procedures and securing other regulatory permits.