As stated by the Dubai officials recently, the subsidiary’s operations are going to serve from now on as a regulatory trial for all future commercial services using the virtual assets. A few days earlier we saw that FZE, which is a subsidiary of crypto exchange FTX, was given the award of Dubai’s first Minimal Viable Product (MVP) license. Furthermore, we hear that it allowed full operation of the exchange in the particular region.
Without much ado let’s get on with the details of the topic. Do give it a read till the end if you take an interest in the latest developments as well.
Recent highlights on the issue
Dubai’s Virtual Asset Regulatory Authority (VARA) has publicly issued an operating license to FZE. According to Helal Saeed Almarri, who is the director general of Dubai WTC Authority, the contents under the MVP program are designed for secure and sustainable growth in Dubai. As of now the FTX FZE exchange’s operations are in the test phase state. Furthermore, it will be focused on providing various crypto services to the users.
According to FTX CEO Sam Bankman-Fried, the license which is a newly acquired exchange will operate under a model. Meanwhile this incorporates regulatory oversight and Financial Action Task Force (FATF) compliance controls catering to Tier 1 international financial markets. In addition, Almarri has also revealed something very important to the press. It is the fact that the exchange’s operations will be used as a regulatory trial for all future commercial services using virtual assets.
“The MVP Phase, exclusive to select, responsible international players like FTX, will allow VARA to prudently structure guidelines and risk mitigation levers for secure commercial operations,” Saeed Almarri has said these words in public statements to emphasize the region’s willingness for extensive crypto adoption in the market.
Further highlights on the topic
With the license we see that FTX FZE has been approved to deploy a few regulated crypto derivatives products and trading services to qualified institutional investors. In addition, people are also seeing the exchange as a clearing house, operating a nonfungible token (NFT) marketplace. Furthermore, we see that it provides custodial services across the region.
As we know that in March 2022, FTX was the first one to receive Dubai’s virtual asset exchange (VAX) license. Now, this happened immediately after the regulators had signed off the virtual assets law and established the Dubai VARA. Furthermore, we hear that Crypto exchange OKX has also received a temporary license as of now from Dubai’s regulatory authorities. The reason is to provide additional services to local investors and financial service providers.
We can see that Dubai and the rest of the UAE have been taking several measures toward cryptocurrency adoption at a fast pace this year. Besides, the emirates have gone a little forward to make quite a few changes and innovations earlier this year(2022) along with the launch of the Dubai Metaverse Strategy.