Crypto.com Secures VARA Full Operational License in Dubai to Cater for Institutional Investors

Jimmy Aki
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Crypto.com announced on April 9 that its Dubai-based entity, CRO DAX Middle East FZE, had obtained full operational service approval from the Virtual Assets Regulatory Authority (VARA), which allows the exchange to cater to institutional inventors in the Middle East region.

The acquisition of the VARA license follows the completion of initial pre-operational requirements in November 2023, as the United Arab Emirates (UAE) continues to attract more crypto firms.

Crypto.com VARA License Grants Access to OTC, Staking, & Spot Trading Offerings

Crypto.com disclosed in an X post that the full operational license from VARA grants institutional investors access to a series of market offerings from its Dubai-based entity, CRO DAX Middle East FZE.

The services include exchange, brokerage, management, and investment, as well as lending and borrowing, spot trading, staking brokerage, and over-the-counter (OTC) offerings.

Looking ahead, the trading platform has outlined a strategic roadmap, which entails the phased rollout of additional product offerings tailored to both retail and institutional traders, including plans to extend the Crypto.com mobile application to retail customers in the ensuing months.

Commenting on this achievement, Eric Anziani, Crypto.com President and Chief Operating Officer (COO), Eric Anziani expressed high enthusiasm for the opportunities the approval creates for his firm.

“Launching with our world-class Crypto.com Exchange institutional services will be fundamental to our continued growth and success in such a key market for our company,” he said.

It could be recalled that Crypto.com’s CRO DAX Middle East initially received Dubai’s Virtual Asset Service Provider (VASP) license in November 2023 to operate specific crypto activities.

However, the company explained that the license is subject to the completion of pre-operational requirements defined by the VARA. Once that’s settled, the exchange will open its doors to institutions in Dubai.

Meanwhile, Crypto.com has been expanding its footprint globally. The exchange launched its crypto trading app in South Korea in March 2024.

The app supports over 150 assets and non-fungible tokens (NFTs) for retail traders.

UAE Low Tax and Crypto-Friendly Regulations Attract Firms

UAE has been historically buoyed by oil reserves but is diversifying its economy with technology and blockchain finance at the forefront. The UAE government has created a business-friendly and low-tax environment that is robust, flexible, and favorable to crypto firms.

This has attracted many firms that have been pivotal in providing investment opportunities, employment, and innovations for residents.

According to the 2023 Crypto Oasis Ecosystem report, there are over 1,800 crypto-based firms in the region, employing 8,650 people across the digital asset sector in the Middle East and North Africa.

In addition, the regulatory landscape in the region is favorable with the introduction of a new regulation from the Dubai International Financial Centre (DIFC), which brings clarity and assurance for crypto businesses and investors.

Most recently, Deribit’s plan to relocate to Dubai after it had secured new local regulatory approval.

While Dubai continues to attract crypto firms, a local media outlet, Arabian Business, reported that the city will host an assembly of crypto industry veterans later this month.

Dubai aims to foster seamless relationships between Web3 stakeholders and create synergy between decentralized projects and centralized exchanges to drive mainstream adoption of digital assets to the next level.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.