UAE Regulator Revokes FTX License In The Wake Of Exchange Collapse

UAE – Dubai Virtual Assets Regulatory Authority (VARA) has suspended the license that allows FTX to develop plans to serve the local market as the FTX fiasco continues to make waves in the crypto industry and beyond.

VARA said on its official website that it had cancelled the license for FTX MENA’s Minimum Viable Product (MVP) in the announcement. VARA acknowledged that the license of FTX MENA was suspended before to any clients being made aware of it, citing the bankruptcy filing of FTX-related companies like FTX exchange and Alameda Research.

The regulator stated that FTX MENA was still in the planning stages. The authority made it clear that the company did not yet have the authorization needed to launch its activities and accept clients. The regulator also called attention to the fact that the company had not yet opened a domestic bank account, which is necessary for virtual asset service providers to begin doing business in the United Arab Emirates.

The regulator has also requested disclosures from VASPs who collaborated with VARA to take part in the regional virtual asset ecosystem. The regulator will then be able to evaluate the exposure of the domestic market and the extent of the contagion within the UAE.

FTX had been granted Dubai’s first license for digital assets

Sam Bankman-Fried, the former CEO of FTX, declared in March that FTX had been granted Dubai’s first license for digital assets. The FTX exchange received authorization to run under the MVP program in July, allowing it to move on with testing and preparations.

VARA was established on March 9 as a result of a new regulation that established a legal framework for cryptocurrencies in Dubai. The regulator’s duties include overseeing industry governance standards creation and investor protection.

Bankman-Fried is still giving a speech at a conference that is being held by The New York Times despite the backlash that the defunct FTX exchange has brought to the cryptocurrency world. Members of the cryptocurrency community reacted negatively to this, blaming law enforcement, and some even made comparisons between Bankman-Fried and Alexey Pertsev, the creator of Tornado Cash who is presently in custody.

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