In a strategic move to cement its status as a global virtual asset hub, Dubai has taken a significant regulatory leap by provisionally licensing Crypto.com’s regional branch, CRO DAX Middle East FZE. This development, as reported by Reuters, marks a pivotal step in the city-state’s ambition to lead in the cryptocurrency sector.
The provisional license, issued by the Dubai Virtual Assets Regulatory Authority (VARA), is a precursor to the full operational clearance for the Virtual Assets Service Provider (VASP) license. Once in effect, this license will empower Crypto.com to offer comprehensive services in digital assets. These services include trading, brokering, investment, and lending options for retail and institutional clientele.
Despite having the established Dubai International Financial Centre, Dubai’s move to grant this license underscores its dedication to becoming a pivotal player in the global virtual asset landscape. This ambition is further reflected in the choice of Dubai by Crypto.com, a major industry entity with a clientele exceeding 80 million globally, as its hub for the Middle East and North Africa operations in 2022.
CEO Kris Marszalek of Crypto.com has publicly praised Dubai’s innovative approach towards cryptocurrency regulation and its commitment to fostering a conducive environment for adoption and technological advancement in this sector.
Industry experts view this licensing as a strategic decision by Dubai, aligning with its objectives to pioneer in crafting practical cryptocurrency regulations and nurturing a culture that embraces innovation and widespread adoption in the virtual assets’ domain. This approach is attracting significant industry players to Dubai, positioning it as a global leader in the virtual assets sector and a key player in the economic diversification of the Gulf region.