Dubai’s Virtual Assets Regulatory Authority (VARA) has granted a preliminary license to cryptocurrency exchange Crypto.com, bringing it closer to receiving its full operational license.
With the Minimum Viable Product (MVP) preparation license, Crypto.com has passed the second stage of the licensing process and can move towards obtaining an operating license in Dubai. It cleared the first phase in June 2022 with initial provisional approval from VARA.
According to a Crypto.com press release, it intends to offer a “full suite of institutional services to the market in compliance with regulations” once it receives an operating license.
VARA review process prior to grant of MVP initial license
In the initial phase, companies can fulfill all the pre-conditions required by VARA to operate as Virtual Assets Service Providers (VASPs).
Crypto.com writes that it received the license after examining its compliance procedures, which include anti-money laundering[AML]capabilities, your customer[KYC]and the most beneficent lord[UBO]Know the policies. VARA also reviewed the firm’s key personnel, governance processes, cross-border security and safety measures.
VARA Chief Executive Officer (CEO) Hansen Oser said, “VARA’s regulatory framework will enable us to build and manage a unique, flexible and securely future-proofed ecosystem that will enable a sustainable and thriving global best-in-class VA provides. A marketplace with secure cross-border interoperability.
The regulatory authority seeks to establish a progressive regulatory framework to make Dubai an international crypto hub. Last month, it issued a rulebook for licensing and non-compliance can result in fines of up to 500,000 AED ($136,000).
Crypto.com tries to expand nationwide but also cuts staff
Last year, Crypto.com got the green light to do business in several countries. For example, it got the green light in August to operate as a VASP in South Korea.
In July, it received regulatory approval in Italy. And in June, the Monetary Authority of Singapore (MAS) granted principal approval to the exchange.
However, Crypto.com is also laying off employees. In fact, with around 2,500 job cuts due by 2022, this is one of the largest layoffs in crypto businesses.
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disclaimer
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.