On Monday, March 20, Crypto.com announced that it attained an “MVP Preparatory License” from Dubai’s Virtual Assets Regulatory Authority. Prior to this, Crypto.com received the initial provisional approval from VARA in June 2022.
The latest license has been granted to the exchange after a “detailed review” of several factors. The same included its governance procedures, AML/CFT capabilities, KYC/UBO policies, cross-border safety and security measures, and compliance practices.
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The MVP phase during the preparatory stage opens the doors for approved applicants to fulfill all pre-conditions required to undertake MVP market operations. This means, once Crypto.com is licensed to be operational, it will be able to “extend” its approved suite of virtual assets activities. The same currently includes crypto exchange spot and derivatives services, brokerage, margin/leverage trading, and OTC offerings. According to the announcement post,
“Following the preparatory stage and successful receipt of our operational license, Crypto.com intends to offer a full suite of institutional services in-market in compliance with regulations.“
Last month, the VARA released a ten-part rulebook containing regulations pertaining to licensing, marketing, issuance of assets, and AML obligations. Several new rules were put forth. However, the agency clarified that they’re flexible in nature, and will be amended, as and when required.
The VARA intends to promote the Emirate as a “regional and international hub” for virtual assets. In fact, it also intends to increase awareness and facilitate innovations. However, to do so, regulations are necessary to protect investors, curb illegal practices, and develop a regulatory standard.
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License milestone: A significant step for Crypto.com
Henson Orser, the Chief Executive Officer of VARA welcomed Crypto.com to the preparatory phase. He went on to add that the participation from “credible players” like the exchange will foster the agency’s mission of “delivering a progressive and future-focused regulatory framework”. Commenting on the latest development, Kris Marszalek, CEO of Crypto.com said,
“This achievement is the next significant step for Crypto.com in an incredibly important market for our business and industry. With the MVP preparatory license, we look forward to continuing to work with regulators in providing customers the most comprehensive and secure crypto experience.”
In other services expansion-related news, the exchange recently added Apple Pay Support for Visa cards in Brazil. The new feature will enable users to pay in stores and on apps and websites with any Apple device.
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