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Crypto.com is on its way to becoming fully operational in Dubai after receiving its preparatory license.
On Monday, the Singapore-based crypto platform announced that Dubai's Virtual Assets Regulatory Authority (VARA) issued the firm with the minimal viable product (MVP) license.
The full license process involves three stages. Crypto.com received the first provisional permit in June last year. Its latest preparatory license is the second stage.
Rival crypto exchange Binance was awarded the Dubai MVP license in September.
Crypto.com has said it intends to offer a "full suite of institutional services in-market in compliance with regulations" upon the successful receipt of the full license.
"Once licensed to be operational, Crypto.com will be able to extend its approved suite of duly regulated virtual assets activities spanning a range of crypto exchange services (spot and derivatives), brokerage, margin/leverage trading, and OTC offerings around settlements for institutional investors," the firm said.
Dubai crypto hub
Last month, Dubai released licensing and authorization requirements for virtual asset companies and issuers looking to operate in the emirate.
VARA's compulsory rulebooks cover compliance and risk-management standards for sector companies, as well as requirements on cyber security norms, market conduct and more.
There are also seven activity-specific rulebooks covering issuance, advisory, custody and exchange services, and more, as well as a specific rulebook for token issuance.
VARA said the regulations aim to "position Dubai as a regional and international hub for Virtual Assets and related services and to develop a digital economy in the city to boost its competitive edge locally and internationally"
"The VA Framework is structurally designed to offer regulatory certainty – allowing the market to have greater clarity on the expected level of operator responsibility," the regulator said in a statement.
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