Crypto.com’s Dubai-based entity, CRO DAX Middle East FZE, has been granted a Virtual Assets Service Provider (VASP) license by the city’s regulatory authority. This achievement is pending operational approval and marks a crucial step in the company’s expansion plans.
Upon receiving full approval from Dubai’s Virtual Assets Regulatory Authority (VARA), CRO DAX Middle East FZE aims to provide a range of services to both retail and institutional investors. These services include exchange functionalities, broker-dealer services, as well as lending and borrowing options. The exchange’s CEO, Kris Marszalek, expressed anticipation about collaborating with regulators to contribute to Dubai’s growing crypto industry. Marszalek emphasized Dubai’s role as a leading market with effective regulatory frameworks.
Crypto.com’s Strategic Move to Dubai
The exchange strategically chose Dubai as its Middle East and North Africa hub in March 2022. The company received a provisional license from VARA in June 2022, followed by a minimal viable product (MVP) preparatory license in March of the current year. This move aligns with the increasing interest in Dubai as a preferred destination for blockchain businesses seeking legal clarity, especially in the wake of regulatory actions against blockchain firms in the United States.
Dubai has emerged as a sought-after destination for businesses due to its clear regulatory framework. Unlike the United States, Dubai and the United Arab Emirates have provided a conducive environment for crypto firms to operate. Binance Dubai General Manager, Alex Chehad, highlighted the clarity in regulations, making it easier for large companies like Binance to establish permanent headquarters in the region. The city’s commitment to fostering a crypto-friendly ecosystem positions it as an emerging digital assets hub in the Middle East.
The exchange’s progress in securing the VASP license adds another layer to the evolving narrative of Dubai’s prominence in the global crypto landscape. As regulatory developments unfold, the city continues to attract businesses aiming to thrive in a well-defined and supportive regulatory environment.