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- 1 VARA is the first law of its kind to regulate virtual assets.
- 2 Crypto.com intends to provide a comprehensive range of institutional services in-market.
- 3 VARA wants to turn Dubai into a global center for cryptocurrencies.
The cryptocurrency exchange Crypto.com is one step closer to receiving its full operational license after the Virtual Assets Regulatory Authority (VARA) of Dubai gave it a preliminary license.
Crypto.com has advanced to the third level of the licensing procedure with the Minimal Viable Product (MVP) Preparation license and can now apply for an operational license in Dubai. With initial preliminary permission from VARA in June 2022, it passed the first stage.
License Granted To Crypto
The Dubai Virtual Asset Regulation Law established VARA in March 2022 and is the first law to regulate virtual assets. Its goal is to develop international standards for the virtual asset industry and to create a cutting-edge legal framework to protect investors and promote responsible business growth in and out of the Emirate.
This announcement was made after Crypto.com’s initial provisional permission from VARA in June 2022. After a thorough examination of its key employees, governance practices, anti-money laundering/countering the financing of terrorism (AML/CFT) capabilities, Know Your Customer (KYC) and ultimate beneficiary owner (UBO) policies and procedures, cross-border safety and security measures, and best-in-class compliance practices, Crypto.com has been granted this MVP preparatory license.
Crypto.com intends to provide a comprehensive range of institutional services in-market in accordance with legislation after completing the preliminary phase and successfully receiving their operational license.
Henson Orser, CEO of VARA, said, “We are pleased to welcome Crypto.com to the MVP Programme preparatory phase.” He further talked about how VARA’s regulatory framework will play a key role in developing and overseeing a distinctive, robust, and future-proofed ecosystem that produces a thriving, best-in-class global VA market with secure cross-border interoperability.
As a result, the involvement of reliable players like Crypto.com will further their goal of establishing a forward-thinking regulatory framework.
VARA Conducts a Review
Companies can currently meet the prerequisites stated by VARA to function as Virtual Assets Service Providers (VASPs.)
According to Crypto.com, it received the license following a review of its compliance procedure, which includes policies on knowing your customer (KYC), an ultimate beneficial owner (UBO), and anti-money laundering (AML) capabilities. Key employees, governance practices, cross-border safety, and security measures were all assessed by VARA.
The regulatory body seeks to create a progressive regulatory framework to turn Dubai into a global center for cryptocurrencies. It published licensing guidelines last month, and failure to comply with them can result in fines of up to 500,000 AED ($136,000).
VARA’s Regulatory Approach
Henson Orser, CEO of VARA, argued that the organization’s regulatory strategy would help create a strong and resilient ecosystem that will offer a superior virtual asset market with secure global operations. He concluded that including organizations like Crypto.com will help it achieve its goal of creating a progressive, futuristic regulatory framework.
Globally speaking, Crypto.com has recently been growing. The majority of important markets, including the UK, France, Italy, and several others, have approved and licensed the exchange. It also obtained a license for a payment institution in Brazil.
Binance previously obtained an MVP license as the exchange modified its operations plans and secured a number of regulatory licenses.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
