Crypto.com Derivatives Services Get Green Light from VARA for Expansion in Dubai
Article New Arrival: Crypto.com in Dubai with Derivatives License
Exciting news for the world of cryptocurrencies, as Crypto.com has secured a limited license from Dubai's Virtual Asset Regulatory Authority (VARA), enabling it to provide derivatives services in the UAE. This expansion reflects Crypto.com's intensifying presence in the region and the burgeoning cryptocurrency sector in Dubai.
Crypto.com Expanding its Reach in Dubai with Derivatives License
With this approval, Crypto.com's Dubai-based entity, CRO DAX Middle East FZE, is ready to launch a host of derivative products such as futures, perpetual contracts, and contracts for difference (CFDs). Initially, these services will cater to qualified institutional investors worldwide, whileselect retail investors will follow suit. On top of that, the limited license grants Crypto.com's retail users access to the US dollar fiat channel, allowing deposits and withdrawals via Standard Chartered Bank.
It's worth noting that the Virtual Asset Service Provider (VASP) license Crypto.com holds remains subject to VARA's specific conditions and localization requirements. Full-scale operations will kick off post regulatory approval. Kris Marszalek, CEO of Crypto.com, expressed his enthusiasm about this expansion, proposing, "We are aggressively transforming and evolving Crypto.com to provide users around the world all of the financial technology tools they are looking for in one place."
Dubai: A Thriving Crypto Hub Amidst Strict Regulations
Dubai has effectively positioned itself as a hub for the burgeoning cryptocurrency industry, with stricter regulations to ensure a secure market. In 2024, VARA enforced stricter guidelines on crypto marketing, necessitating investment promotions to carry clear disclaimers about digital asset volatility[2]. Dubai's regulatory body has also taken action against unlicensed firms, contributing to a more secure market environment.
Crypto.com's regulatory achievements surpass Dubai, as it secured a Major Payment Institution license for Digital Payment Token (DPT) services in Singapore in June 2024 and obtained registration with the Netherlands' central bank in July[2]. The exchange also secured a fully operational VASP license in Dubai in April 2024 and launched its global retail offering backed by Standard Chartered Bank in August[2].
The UAE remains a critical player in the evolving global cryptocurrency landscape. While some nations tighten regulations, others, including the UAE, continue to endorse digital assets. Mantra Finance, a decentralized finance and asset tokenization platform, recently received a VASP license from VARA, further fortifying Dubai's status as a world-renowned destination for crypto innovation [3].
Crypto.com writer:
With an insatiable curiosity for the enigmatic world of finance, I've been delving into financial journalism for over four years, covering traditional equities to niche areas like venture capital. The financial markets never cease to astound me, and I'm always eager to help people navigate the intricacies of these markets. That's what drives me to bring clear and insightful financial journalism to Coincu readers.
Extra Insights:- In March 2022, the Virtual Asset Regulatory Authority (VARA) was established in Dubai as the first independent regulatory body for cryptocurrencies globally.- Dubai's vision of a cashless economy coincides with Crypto.com's new partnership that allows residents to pay government service fees using cryptocurrencies.- Over time, Dubai has evolved from having minimal specific regulations to a comprehensive framework that encourages innovation and clarity.
- As Crypto.com expands its services in Dubai, the company is poised to offer a range of derivative products such as futures, perpetual contracts, and contracts for difference (CFDs), with the possibility of catering to retail investors in the future.
- In recent news, Dubai has become a hub for the cryptocurrency industry, with strict regulations in place to ensure a secure market environment, but still welcoming digital assets as part of its evolving global cryptocurrency landscape.
- Apart from Crypto.com, other platforms like Mantra Finance are also taking advantage of Dubai's supportive regulatory environment, receiving a VASP license from VARA and fortifying Dubai's status as a world-renowned destination for crypto innovation.
