| Key Points: – Crypto.com exchange received a limited license from Dubai’s VARA to offer derivatives services, expanding its existing VASP license. – The company plans to launch futures, perpetual contracts, and CFDs for institutional investors first, with retail expansion to follow. |
Crypto.com exchange has secured a limited license from Dubai’s Virtual Asset Regulatory Authority (VARA), allowing it to provide derivatives services in the UAE.
The announcement, made on the company’s official blog, marks an expansion of its existing Virtual Asset Service Provider (VASP) license, reinforcing its presence in the region.
Crypto.com Exchange Expands in Dubai with New Derivatives License
With this approval, Crypto.com’s Dubai-based entity, CRO DAX Middle East FZE, is set to launch a range of derivative products, including futures, perpetual contracts, and contracts for difference (CFDs).
Initially, these services will be available to qualified institutional investors globally before being extended to select retail investors. Additionally, the limited license grants all Crypto.com retail users access to the US dollar fiat channel, facilitating deposits and withdrawals via Standard Chartered Bank.
Crypto.com exchange emphasized that the VASP license remains subject to specific conditions and localization requirements set by VARA. Full-scale operations will commence following regulatory approval. CEO Kris Marszalek expressed enthusiasm about expanding the company’s offerings in Dubai:
“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’s Crypto Market Thrives Amid Stricter Regulations
Dubai has positioned itself as a hub for the cryptocurrency industry, strengthening regulations while continuing to attract major players. In 2024, VARA implemented stricter guidelines on crypto marketing, requiring investment promotions to carry clear disclaimers about digital asset volatility. The regulatory body has also cracked down on unlicensed firms to ensure a more secure market environment.
Crypto.com’s regulatory milestones extend beyond Dubai. The company 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.
The exchange also received a fully operational VASP license in Dubai in April 2024 and launched its global retail offering backed by Standard Chartered Bank in August.
The UAE remains a key player in the evolving global crypto landscape. While some nations have imposed stricter regulations, others, including the UAE, continue to embrace digital assets.
Recently, decentralized finance and asset tokenization platform Mantra Finance recently received a VASP license from VARA, further solidifying Dubai’s role as a leading destination for crypto innovation.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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