Crypto.com's Dubai branch, known as CRO DAX Middle East FZE, has recently obtained a Virtual Assets Service Provider (VASP) license from the city state's regulator. This significant approval opens doors for the company to broaden its range of services, catering to both retail and institutional investors in the region.
Scope of VASP License
With the VASP license in hand, Crypto.com is now authorized to offer various services, including exchange operations, broker-dealer functions, investment services, as well as lending and borrowing facilities. This license signifies a milestone for the company, allowing it to operate with fiat currency in the UAE, making it the first global cryptocurrency operator to achieve such authorization in the country.
Operational Approval and Future Plans
Following the fulfillment of conditions outlined in the Virtual Asset Service Provider Licence issued to CRO DAX Middle East FZE in November 2023, Crypto.com has secured operational approval. The platform is now accessible to institutional clients and eligible retail investors, providing services such as spot trading, staking brokerage, and selected over-the-counter (OTC) transactions for settlements in specific markets.
Looking ahead, Crypto.com intends to further expand its offerings in the region. This includes the imminent launch of the Crypto.com App and additional products tailored for retail users, aiming to enhance accessibility and convenience for cryptocurrency enthusiasts in the Middle East.
Company Statements
Eric Anziani, President and COO of Crypto.com, expressed excitement about the company's expansion in the UAE and highlighted the significance of launching institutional services through the Crypto.com Exchange. Stuart Isted, GM of Middle East and Africa at Crypto.com, emphasized the company's support for Dubai's initiatives in advancing the crypto industry responsibly and collaboratively with the regulator.
Regulatory Landscape in Dubai
Since February 2023, Dubai has mandated cryptocurrency companies to acquire authorization and licenses to conduct operations in the region. The licensing process involves three stages: obtaining a provisional permit, securing a preparatory license, and ultimately receiving an operating license. Crypto.com had previously received provisional and preparatory licenses before obtaining the full VASP license, demonstrating its commitment to regulatory compliance.
Dubai's Growing Role in the Crypto Industry
Choosing Dubai as the hub for its operations in the Middle East and North Africa underscores Crypto.com's recognition of the region's growing significance in the global cryptocurrency landscape. The favorable regulatory environment in Dubai contrasts with the increasingly challenging regulatory landscape faced by cryptocurrency firms in the United States, positioning Dubai as an attractive destination for crypto businesses seeking clear regulatory guidelines and supportive infrastructure.
