Dubai’s Virtual Assets Regulatory Authority (VARA) has granted a preparatory license to the cryptocurrency exchange Crypto.com, bringing it closer to getting its full operational license.
With the Minimal Viable Product (MVP) Preparatory license, Crypto.com has passed the second stage of the licensing process and can move towards obtaining an operational license in Dubai. It cleared the first stage, with initial provisional approval from VARA in June 2022.
According to the Crypto.com press release, it intends to offer a “full suite of institutional services in-market in compliance with regulations” after getting an operational license.
VARA’s Review Procedure Before Granting an MVP Preparatory License
In the preparatory stage, companies can fulfill all pre-conditions required by VARA to operate as Virtual Assets Service Providers (VASPs.)
Crypto.com writes that it got the license after an examination of its compliance procedure which included anti-money laundering (AML) capabilities, know your customer (KYC) and ultimate beneficial owner (UBO) policies. VARA also reviewed the firm’s key personnel, governance procedures, cross-border safety, and security measures.
Henson Orser, the Chief Executive Officer (CEO) of VARA, said, “VARA’s regulatory framework will be instrumental in creating and managing a unique, resilient, and securely future-proofed ecosystem that delivers a sustainable and thriving global best-in-class VA market with secure cross-border interoperability.”
The regulatory authority wants to establish a progressive regulatory framework to make Dubai an international crypto hub. Last month, it released rulebooks for licensing, and non-compliance with the same, can result in penalties of up to 500,000 AED ($136,000).
Crypto.com Tries to Expand Across Nations but Also Cuts Staff
Last year, Crypto.com received the go-ahead to trade in a number of countries. For example, it got a green light in August to operate in South Korea as a VASP.
In July, it received regulatory approval in Italy. And in June, the Monetary Authority of Singapore (MAS) granted principal approval to the exchange.
However, Crypto.com has also been laying off staff. In fact, with nearly 2,500 job cuts since 2022, it conducted one of the largest layoffs among crypto businesses.
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