Crypto.com's Dubai branch, CRO DAX Middle East FZE, has been granted a Virtual Assets Service Provider (VASP) license by the city state's regulator.
The approval paves the way for the company to expand its suite of services to both retail and institutional investors in the region.
The VASP license allows Crypto.com to offer a range of services including exchange operations, broker-dealer functions, investment services, along with lending and borrowing facilities.
Per its statement, Crypto.com has secured operational approval after meeting the conditions set forth in the Virtual Asset Service Provider Licence issued to CRO DAX Middle East FZE in November 2023. This marks the first instance of a global cryptocurrency operator being authorized to operate with fiat currency in the UAE.
The platform is now open to institutional clients and eligible retail investors, offering services such as spot trading, staking brokerage, and selected over-the-counter (OTC) transactions for settlements in specific markets.
Following this approval, Crypto.com plans to expand its offerings in the coming months, which will include the launch of the Crypto.com App and additional products for retail users.
“We are thrilled to expand our presence and offering in the UAE with the support of VARA. Launching with our world-class Crypto.com Exchange institutional services will be fundamental to our continued growth and success in such a key market for our company,” said Eric Anziani, president and COO of Crypto.com.
“We are incredibly supportive of the steps Dubai is taking to progress the crypto industry, both in-market and abroad. But this is still just the beginning, and we look forward to continuing to work closely with VARA in our collective efforts to effectively and responsibly advance the sector,” added Stuart Isted, GM of Middle East and Africa at Crypto.com.
Dubai has mandated cryptocurrency companies to secure authorization and the necessary licenses to conduct operations since February 2023. Obtaining a full license is a three-step process that includes receiving a provisional permit, securing a preparatory license, and finally, being granted an operating license. The exchange had previously received a provisional license from VARA in June 2022, followed by a minimal viable product (MVP) preparatory license in March 2023.
Choosing Dubai as the center for Crypto.com's operations in the Middle East and North Africa highlights its growing importance in the international cryptocurrency industry.
This move comes at a time when the regulatory landscape in the United States has grown increasingly challenging for cryptocurrency firms. In contrast, Dubai has emerged as a preferred destination for crypto businesses, offering clear regulatory guidelines.