Crypto.com Receives Regulatory Approval to Offer Virtual Asset Services in Dubai

• Crypto.com’s Dubai entity, CRO DAX Middle East FZE, has obtained a Virtual Asset Service Provider License from Dubai.
• The license enables Crypto.com to provide a range of virtual asset services.
• In 2022, Crypto.com extended its regulatory presence globally.

Major cryptocurrency exchange Crypto.com has been granted a license to provide various virtual asset services in Dubai. The regulatory approval represents a key expansion for Crypto.com in the Middle East region.

The company announced Tuesday that its Dubai entity, CRO DAX Middle East FZE, received approval from the emirate’s Virtual Asset Regulatory Authority (VARA) to operate as a licensed virtual asset service provider.

VARA’s licensing process involves three progressive stages: a provisional permit, a preparatory license, and a full operating license. Crypto.com received its preparatory approval from VARA in March 2022 and has now secured the crucial operating license.

With this authorization, Crypto.com can offer services including crypto exchange, brokerage, asset management, lending, and borrowing once it meets the final localization criteria. The firm joins select companies like Nomura subsidiary Laser Digital in receiving a formal VARA license in Dubai.

Crypto.com growing globally

The move adds to Crypto.com’s growing regulatory footprint globally. Over 2022, the Singapore-headquartered exchange also gained licenses to operate in markets like the UK, France, the Netherlands, and Brazil.

However, Crypto.com has endured workforce reductions and banking difficulties amid the 2022 crypto winter, which saw prices plunge. The company aims to rebound by expanding services through compliant operations.

“It is an incredible honor to be one of the first crypto exchanges to be granted a Virtual Asset Service Provider License by VARA, and it further proves our company’s commitment to security and compliance,” said Crypto.com CEO Kris Marszalek.

Dubai mandated registration and licensing for all virtual asset providers in February 2022. The VARA framework aims to establish clear regulations to attract crypto businesses while ensuring investor protection.

As a major global financial center, Dubai sees virtual assets as the next stage in its economic development. VARA approval gives Crypto.com the green light to tap into the city’s burgeoning crypto and blockchain industry.

Marszalek called Dubai “a market with enormous potential for cryptocurrencies,” adding that the license will enable Crypto.com to contribute meaningfully to its growth.

With its regulatory standing now secured, Crypto.com can leverage Dubai as a springboard to expand services throughout the Gulf region. As one of the first and largest exchanges to get VARA approval, the company hopes to become a leader in widening crypto adoption across the Middle East.