Crypto.com, the world’s leading cryptocurrency exchange, has recently obtained full operational approval from the Dubai Virtual Assets Regulatory Authority (VARA). This approval grants legal status to Crypto.com’s Dubai office, CRO DAX Middle East FZE, making it the first cryptocurrency exchange permitted to operate legally in the United Arab Emirates (UAE). This achievement showcases Crypto.com’s commitment to regulatory compliance and reflects Dubai’s proactive stance on cryptocurrency.
By integrating traditional fiat currency with digital currency in the UAE, Crypto.com’s VARA credit demonstrates its adherence to pre-operational requirements for obtaining the virtual liquidity service provider license in November 2023. Institutional investors can now access Crypto.com’s exchange services, including spot market trading, token staking, and high-volume cryptocurrency brokerage. This development aims to cater to institutional customers and well-informed retail investors in the UAE, fostering a more crypto-oriented ecosystem in the country.
Eric Anziani, President and COO of Crypto.com, emphasized the significance of this achievement, stating, “Being the world’s first global crypto operator operational with fiat in the UAE, and considering our close cooperation with regulators, reflects our commitment to responsible industry practices in the region.” Stuart Isted, General Manager of CRO DAX Middle East FZE, echoed this sentiment.
Crypto.com’s expansion into Dubai is part of its strategy to enhance its global presence. Since its establishment in Hong Kong in 2016 and its current operations in Singapore, Crypto.com has expressed its intention to expand into more locations over the past year. The company has formed strategic partnerships and initiatives, such as collaborating with the largest private investment bank in Latin America to promote price stability of the BTG Dol stablecoin and launching its trading application in South Korea, with the aim of becoming a global leader in the industry.
This move into Dubai comes at a time when Europe is considering the Markets in Crypto-Assets Regulation (MiCA), which could further facilitate Crypto.com’s expansion into Europe. The regulatory landscape for cryptocurrencies is evolving rapidly, and Crypto.com’s proactive approach to compliance and engagement with regulatory agencies positions it for significant success in the international market.
Crypto.com has faced regulatory challenges along the way, including a penalty imposed by the Dutch central bank for illegal registration. However, the platform has proven its resilience by having the fine cancelled and obtaining registration to operate in the Netherlands, demonstrating its unwavering commitment to regulatory compliance.
In conclusion, Crypto.com’s approval to operate in Dubai validates its growth strategy and highlights the increasing trust in regulated and reliable digital currencies. This coin-to-coin exchange within the UAE sets a precedent for the virtual asset industry, while Crypto.com’s role is to foster complementarity and efficiency in the cryptocurrency environment by navigating the complexities of regulatory authorities.