Crypto.com finds solace in Dubai amid regulatory clampdown in U.S.
- The crypto exchange referred to its Dubai office as its regional hub in the Middle East region.
- It received an MPI license from the MAS in June.
Crypto.com has obtained a Virtual Assets Service Provider license in Dubai.
Virtual Assets Regulatory Authority (VARA), the crypto regulator of Dubai, granted the license to CRO DAX Middle East FZE, the Dubai entity of Crypto.com.
https://t.co/vCNztATkNg is proud to announce that we have been granted a Virtual Asset Service Provider Licence pending operational approval from Dubai's Virtual Assets Regulatory Authority, building on our position in the #UAE market.
— Crypto.com (@cryptocom) November 14, 2023
The exchange can now offer broker-dealer, lending and borrowing services once the authority grants operational approval.
Crypto.com CEO Kris Marszalek said,
“We are excited to showcase more of our industry-leading products to customers across permissible jurisdictions from Dubai, and look forward to working with regulators contributing to this thriving ecosystem.”
The exchange also received a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS) in June.
The UAE and Singapore emerge as crypto hubs
Combative actions of regulatory bodies in the U.S. have compelled crypto entities to look elsewhere for expansion. The U.S. doesn’t seem keen to issue crypto-specific regulations as it thinks existing securities laws are sufficient to regulate crypto.
Meanwhile, Dubai and Abu Dhabi, two prominent emirates in the United Arab Emirates (UAE), have established crypto regulators in their jurisdictions in the last few years.
Singapore legislated the Payment Services Act (PSA) in January 2020 to oversee both traditional and cryptocurrency exchanges. The island nation refers to cryptocurrencies as digital payments tokens (DPTs).
Regulation in both these countries is still evolving but at least, it’s crypto-specific. Unlike the U.S., regulatory bodies in these jurisdictions recognize crypto assets as a separate asset class.
As per a recent Chainalysis report, institutional investments constituted more than 67% of crypto transactions in the UAE between July 2022 and June 2023. The total value of crypto assets received by the UAE during this period amounted to almost $35 billion.
Meanwhile, Henley & Partners put Singapore on the top spot in its Crypto Adoption Index, followed by Switzerland and the UAE. Both countries top the list in tax-friendliness and public adoption.