Singapore-based Crypto.com’s subsidiary, CRO DAX Middle East, has obtained a Virtual Assets Service Provider (VASP) License from Dubai’s Virtual Assets Regulatory Authority (VARA). This license allows the subsidiary to engage in specified crypto service activities in Dubai.
License Approval and Operations
The license granted by VARA is subject to Crypto.com’s compliance with certain conditions and localization requirements. Once these requirements are fully satisfied, the company will receive an operational approval notice from the regulator, enabling it to commence its operations.
“Dubai has been one of the jurisdictions supporting crypto adoption and innovation,” said Kris Marszalek, CEO of Crypto.com. He highlighted the city-state’s commitment to designing effective regulations for the crypto space.
Services Offered
If the license is approved, Crypto.com will be able to offer a range of services, including:
- Exchange
- Broker-dealer
- Lending/borrowing
Dubai as a Crypto-Friendly Jurisdiction
With its regulatory architecture and efforts to establish itself as a global hub for cryptocurrency and blockchain activities, Dubai has become a crypto-friendly jurisdiction. In 2022, Dubai introduced a new regulatory framework to provide clarity and security for digital asset issuers and service providers.
The move has gained support from industry players, leading to the migration of several crypto businesses to the United Arab Emirates. The low-tax and business-friendly regulatory landscape in Dubai has attracted companies, especially amid the stricter stance taken by US regulators against crypto firms.
For example, crypto exchange Bybit relocated its headquarters from Singapore to Dubai in March. Additionally, Binance, the world’s largest crypto exchange, acquired a license to operate its regional business in Dubai.
