Crypto.com announced that it has been granted a license to operate specified virtual asset service activities in Dubai. This milestone achievement further strengthens Crypto.com's position in the global cryptocurrency market.

CoinDesk reported that the license has been awarded to Crypto.com's Dubai entity, CRO DAX Middle East FZE. In March, this entity received preparatory approval from Dubai's Virtual Assets Regulatory Authority (VARA), marking a crucial step towards obtaining the full license, Cointelegraph pointed out.

Fulfilling Licensing Requirements

Acquiring a full license involves three stages: a provisional permit, a preparatory license, and an operating license. Currently, Crypto.com is in the third and final stage of this process. However, the company will need to meet specific localization requirements and conditions before commencing operations.

The licensed exchange will have the authority to deliver a wide range of services, including exchange services, broker-dealer services, management and investment services, as well as lending and borrowing services.

Dubai's regulatory framework obligates crypto firms to obtain the necessary authorization and licenses to operate, making February 2023 a significant deadline. Recently, Laser Digital, a digital asset subsidiary of the renowned financial services giant Nomura, received an operating permit.

Expanding Global Regulatory Compliance

Crypto.com's successful licensing journey extends beyond Dubai. The exchange completed its licensing process in Singapore earlier this year and has achieved regulatory victories in various countries such as the Netherlands, the United Kingdom, France, and Brazil.

Crypto.com CEO Kris Marszalek stated that the company looks forward to collaborating with regulators to contribute to Dubai's thriving crypto industry.

"It is an incredible honor to be one of the first crypto exchanges granted a Virtual Asset Service Provider License by VARA. This further demonstrates our company's unwavering commitment to security and compliance," said Marszalek.

Since March 2022, Dubai has emerged as Crypto.com's strategic Middle East and North Africa hub. The exchange initially obtained a provisional license from VARA in June 2022, followed by a minimal viable product (MVP) preparatory license in March of this year.

With regulators in the United States taking strong action against crypto firms, Dubai has become an attractive destination for businesses seeking legal clarity in the crypto space. Many firms are eyeing Dubai as an emerging digital asset hub in the Middle East, as the jurisdiction provides a clear regulatory framework. Binance Dubai General Manager Alex Chehad highlighted the region's advantages, stating that Dubai and the United Arab Emirates offer a conducive environment for companies like Binance to establish permanent headquarters.

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