Crypto.com recently announced that it has secured a Virtual Assets Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA). This significant milestone allows the exchange to offer regulated digital asset services, reinforcing Dubai’s reputation as a leading crypto-friendly hub.
Advantages of the VASP License
By obtaining the VASP license, Crypto.com gains permission to provide specific virtual asset services. However, the exchange must meet additional conditions set by VARA to obtain the full VASP license. This will enable Crypto.com to offer a wider range of services, including exchange, broker-dealer, management and investment, and lending and borrowing.
Kris Marszalek, CEO of Crypto.com, expressed his pride in achieving this milestone. He emphasized that the license demonstrates the company’s dedication to security and compliance. Marszalek also commended Dubai authorities for their effective regulations, stating that the city continues to lead in designing regulatory frameworks that support innovation in the crypto space.
Dubai’s Reputation as a Crypto-Friendly Jurisdiction
Dubai has emerged as one of the most crypto-friendly jurisdictions worldwide, attracting numerous crypto-related firms. The regulatory body in Dubai has granted operational licenses to various crypto exchanges and firms in recent months, including Komainu, Backpack Exchange, and WadzPay. These developments showcase Dubai’s robust regulatory framework and comprehensive rulebooks for VASPs.
Once Crypto.com meets the specific conditions set by VARA, it will qualify for operational approval. This approval will empower the exchange to offer its top-notch products to customers across permitted jurisdictions from Dubai. Gaining operational approval further solidifies Dubai’s position as a global frontrunner in the crypto industry.
Brad Garlinghouse, CEO of Ripple, cited Dubai as a prime example of a jurisdiction where regulators actively engage with the evolving crypto industry. He attributed Dubai’s success to its clear regulatory frameworks, policies that promote innovation, and its entrepreneurial-friendly environment.
Crypto.com’s achievement in securing a VASP license from VARA in Dubai is a testament to the company’s commitment to security and compliance. This milestone further strengthens Dubai’s position as a crypto-friendly jurisdiction with effective regulations and comprehensive rules for VASPs. The successful engagement between regulators and the crypto industry has played a crucial role in Dubai’s progress, attracting global players and fostering innovation in the city.