Crypto.com's Dubai Entity Granted VASP License Pending Operational Approval

Crypto.com's Dubai entity has been granted a Virtual Assets Service Provider (VASP) license by Dubai's regulatory authority, pending operational approval. The approval process involves the city's Virtual Assets Regulatory Authority (VARA), and once fully approved, Crypto.com's local business, CRO DAX Middle East FZE, will be authorized to provide exchange, broker-dealer, and lending and borrowing services to both retail and institutional investors.

In a press release on November 14, Crypto.com CEO Kris Marszalek expressed anticipation for collaboration with regulators to contribute to Dubai's crypto industry. He highlighted Dubai as a leading market with effective regulatory design, reflecting the city's commitment to providing legal clarity and a favorable environment for crypto businesses.

In March 2022, Crypto.com designated Dubai as its Middle East and North Africa hub, receiving a provisional license from VARA in June 2022 and a minimal viable product (MVP) preparatory license in March this year. The move to establish a presence in Dubai aligns with a broader trend of crypto businesses seeking jurisdictions with clear regulatory frameworks. Dubai has emerged as a preferred destination, offering legal clarity and a crypto-friendly environment, especially as some other jurisdictions, like the United States, increase regulatory scrutiny on crypto firms.

Binance Dubai General Manager Alex Chehad emphasized the advantages of Dubai's regulatory framework, noting its clarity, which facilitated the establishment of permanent headquarters for large companies like Binance in the region. This underscores Dubai's position as an emerging digital assets hub in the Middle East.