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- The crypto exchange named its Dubai office as the regional hub in the Middle East.
- It received an MPI license from the MAS in June.
Crypto.com has obtained a Virtual Assets Service Provider license in Dubai.
Virtual Assets Regulatory Authority (VARA), Dubai’s crypto regulator, has granted the license to CRO DAX Middle East FZE, the Dubai entity of Crypto.com.
https://t.co/vCNztATkNg is proud to announce that we have been awarded a Virtual Asset Service Provider license pending operational approval from the Virtual Assets Regulatory Authority of Dubai, building on our position in the #UAE market.
Learn more:https://t.co/0anXDLsxTv pic.twitter.com/SgcqSTSqux
— Crypto.com (@cryptocom) November 14, 2023
The exchange can now offer broker-dealer, lending and borrowing services once the authority grants operational approval.
Crypto.com CEO Kris Marszalek said:
“We are excited to introduce more of our industry-leading products to customers in permitted jurisdictions of Dubai, and look forward to working with regulators who contribute to this thriving ecosystem.”
Crypto.com received a minimum viable product (MVP) license in March. The exchange referred to its office in Dubai as a regional hub in the Middle East.
The exchange too received a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS) in June.
The UAE and Singapore are emerging as crypto hubs
Combative actions by US regulators have forced crypto entities to look for expansion elsewhere. The US appears reluctant to enact crypto-specific regulations as it believes existing securities laws are sufficient to regulate crypto.
Meanwhile, Dubai and Abu Dhabi, two prominent emirates in the United Arab Emirates (UAE), have established crypto regulators in their jurisdictions in recent years.
Singapore passed the Payment Services Act (PSA) in January 2020 to oversee both traditional and cryptocurrency exchanges. The island nation refers to cryptocurrencies as digital payment tokens (DPTs).
Regulations in both countries are still developing, but are at least crypto-specific. Unlike the US, regulators in these jurisdictions recognize crypto assets as a separate asset class.
According to a recent Chainalysis reportInstitutional investments made up more than 67% of crypto transactions in the UAE between July 2022 and June 2023. The total value of crypto assets received by the UAE during this period was almost $35 billion.
Meanwhile, Henley & Partners put down Singapore ranks first in the Crypto Adoption Index, followed by Switzerland and the UAE. Both countries top the list in terms of tax friendliness and public adoption.