Dubai has positioned itself as one of the most crypto-friendly cities, having established a new regulator to cement the UAE’s position in the crypto space. Following this move, cryptocurrency exchanges began flocking to the region, securing approval from the new regulator to operate in the region.
In March, Dubai authorities announced a new law on crypto assets and established a new regulatory body called the Dubai Virtual Assets Regulatory Authority (VARA). The regulator is responsible for organizing the issuance and trading of virtual assets and virtual tokens, authorizing virtual asset service providers, ensuring the protection of personal data, organizing operations of virtual asset platforms, and preventing manipulation of virtual assets. prices.
The VARA has regulatory authority within the special development and free zones of the Emirate. However, it does not have jurisdiction over the Dubai International Financial Center (DIFC). In a previous interview with Cointelegraph, Kokila Alagh, founder of a UAE-based law firm, explained that the DIFC is governed by its own independent regulator, the Dubai Financial Services Authority.
With the region offering a lot of regulatory clarity and the intent to become a key player in contributing to the future of cryptocurrencies, exchanges took the opportunity to jump into the region, securing interim VARA approvals. In July alone, many exchanges got approvals to expand their reach in the region.
OKX expands its offers after obtaining a provisional license
On July 14, the OKX exchange gave Dubai a boost by acquiring a provisional license under the VARA. According to the OKX team, the license allows the exchange to expand its services and products in the region. This means that you can offer added services for specific investors and financial service providers in Dubai.
Huobi obtains a provisional MVP license
Cryptocurrency exchange Huobi Global jumped on the bandwagon by securing a Minimum Viable Product (MVP) license under the VARA. In an announcement sent to Cointelegraph on July 15, Huobi noted that Huobi Investment FZE, a UAE-based entity under Huobi, has been authorized to offer its products and services under the specialized parameters of VARA. Following this, the exchange plans to establish a headquarters in the region.
Komainu to Provide Crypto Custody After Obtaining VARA Approval
Komainu, a company that works with institutions to gain exposure to cryptocurrencies, announced that it was granted approval to operate in the region on July 27.. With the authorization to operate, the custodian can expand its blockchain-based digital asset custody services to companies in the region.
FTX subsidiary obtains license to operate
FTX FZE, a subsidiary of cryptocurrency exchange FTX, obtained an operating license from VARA on July 29.. The firm has been approved under the Minimum Viable Product (MVP) license, allowing the exchange to fully operate within the region and allowing it to provide regulated crypto derivatives and trading services to qualified institutions. Previously, FTX was also licensed as a virtual asset exchange (VAX) under the VARA.
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